: You can set orders in advance and "walk away," as they execute automatically when your target price is met.
: If the market moves away from your price, you might miss out on a profitable trade entirely. what is a limit order when buying stocks
The choice between these two types depends on whether you value a or a guaranteed execution . : You can set orders in advance and
: If a stock is currently trading at $17 but you only want to pay $14.50, you place a buy limit order at $14.50. The order remains pending until the price hits $14.50 or less. : If a stock is currently trading at
: If there isn't enough liquidity at your price, only a portion of your order may be filled (e.g., you want 100 shares but only 50 are available at your price). Comparison: Limit Order vs. Market Order
: Limit orders are often the only order type allowed during pre-market or after-hours sessions.
Investors typically use limit orders to manage costs, especially in volatile markets.