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 or surpassed.
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 are intended to take advantage of and enter the market when the stock price makes a downward movement. For example, if the current price of an instrument is 40.00, the target price of the Limit Buy Order should be below 40.00.
If the target price is not set below the current price, the order 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 are intended to secure a profit from an already opened position should the market price of the traded instrument make an upward movement.
The Limit Sell price should be above the current Sell price, otherwise, it will be converted into a Market Order again.
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 or replaced by a new order of the same or a different type.
** If there are not enough shares in the market when your limit price is reached, it may take multiple trades to fill the entire order, or the order may not execute at all.