What is a Limit Order?

A limit order is an order to buy or sell a stock at a specific price or better. If the market price never reaches your limit price within the validity period of the order, the order will not be filled.

Example: Assume the current market price is USD20:

BUY: If you submit a buy limit order at USD18, and later the market price drops to USD18, the buy limit order will be triggered and filled at a price no more than USD18 (assuming there are sufficient shares to fill your order).

SELL: If you submit a sell limit order at USD22, and later the market price rises to USD22, the sell limit order will be triggered and filled at a price no less than USD22 (assuming there are sufficient shares to fill your order).

Reminder: When the set limit price exceeds the latest price by +/- 20%, your orders may be cancelled by the exchange."