Limit Orders are used to trade securities at a pre-defined maximum or minimum price based on whether you are selling or buying. The order will not be filled unless its target price is reached.
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:
They track a downward movement of a share's price, meaning that if the current price is £40.00, for example, and you wish to buy at £35.00, the Limit should be placed at the lower price.
The Limit Buy price should be below the current Buy price, otherwise, it will be converted into a Market Order automatically.
Here's how to set one:
- Select your preferred instrument;
- Tap on 'Buy' followed by the 'Limit' window;
- Select the number of shares;
- Set a Price below the current one you wish to Buy the shares for;
- Review and Send Order.
Limit 'Sell' Orders:
They have an upward direction. If the current price, for example, is £40.00 and you want to sell at £45.00, you should pick the higher price.
The Limit Sell price should be above the current Sell price, otherwise, it will be converted into a Market Order automatically.
Here's how to set one:
- Select your preferred instrument;
- Tap on 'Sell' followed by the 'Limit' window;
- Select the number of shares you wish to sell;
- Set a Price above the current one you wish to sell the shares for;
- Review and Send 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.