A limit order is an instruction to buy or sell a stock at a specific price or better. The order can only be executed if the market price reaches the specified level and there is a counterparty willing to trade at that price. Example: Suppose the current market price is EUR 20:
Buy: If you place a buy limit order at EUR 18 and the market price later drops to EUR 18, the buy limit order will be triggered and executed at a price no higher than EUR 18 (assuming there are enough shares to fill your order).
Sell: If you place a sell limit order at EUR 22 and the market price later rises to EUR 22, the sell limit order will be triggered and executed at a price no lower than EUR 22 (assuming there are enough shares to fill your order).
Note: When the set limit price exceeds the most recent price by +/- 20%, your orders may be cancelled by the exchange.
| 