A limit order is an order to buy or sell a financial instrument at or at better than a trader-specified price, namely the limit price.

A buy limit order is executed (“filled”) at the limit price or at a price lower than the limit price. For example, if you want to buy Apple (AAPL) but don’t want to pay more than $120, then you can place a limit order to buy Apple shares at a limit price of$120. If the market price reaches 120 or drops below 120, the order will be executed.

Similarly, a sell limit order is filled at the limit price or at a price higher than the limit price. For example, if you want to sell Apple (AAPL) but don’t want to receive less than $120, then you can place a limit order to sell Apple shares at a limit price of$120.

On Stockfuse, limit orders are executed only if the market price after adjusting for market impact reaches the limit price.