Limit Order Definition

A limit order is an instruction to buy or sell an asset at a specified price or better.

What is a Limit Order?

Limit orders give traders control over their execution price but are not guaranteed to fill if the market does not reach that level.

They are commonly used to enter or exit positions at predetermined price targets.

Placing a sell limit order at $60 for a stock trading at $55 means the order only fills if price rises to $60 or higher.

Leverage allows traders to control a larger position size using a smaller amount of capital.

A liability is a financial obligation or debt owed by an individual or company to another party.

LIBOR, the London Interbank Offered Rate, was a benchmark interest rate at which major banks historically lent to one another.