Limit Orders allow investors to trade securities at a certain price. This order type is used to execute a trade if the price reaches the specified level and it will not fill the order if the price does not reach this level. A Limit Order sets the maximum or minimum price at which you will buy or sell.
For example:
If you own a share priced at £40 but you wish to sell it for £45, you would set the limit price at £45. The order would then execute at or more. The same applies when buying a share, if the market price is £40 and you wish to buy a share for £35, then you would set the limit price at £35.
If there are not enough shares in the market at your limit price, it may take multiple trades to fill the entire order, or the order may not execute at all.
Limit 'Buy' Orders
Here's how to set one:
1. Select your preferred instrument.
2. Tap on 'Buy' followed by the 'Limit' window.
3. Select the number of shares.
4. Set a Maximum Price you wish to Buy the shares for.
5. Review and Send Order.
NOTE: The order's target price should be below the current market price. Otherwise, it will automatically be converted into a Market Order.
Limit 'Sell' Orders
Here's how to set one:
1. Select your preferred instrument.
2. Tap on 'Sell' followed by the 'Limit' window.
3. Select the number of shares you wish to sell.
4. Set a Minimum Price you wish to Sell the shares for.
5. Review and Send Order.
NOTE: The order's target price should be above the current market price. Otherwise, it will automatically be converted into a Market Order.
* A Limit Order will remain pending and the funds needed for its execution - blocked, until its target price is reached. It cannot be modified unless cancelled and replaced by a new order of the same or a different type.