Limit Order
Definition of Limit Order
A limit order refers to a directive to trade in a particular stock at a minimum/maximum pre-defined price. This is in contrast to a market order, which is a directive to trade in stock at prevailing prices. For instance, an investor may place a limit order to sell 100 shares of Reliance Industries' stock at a limit of INR 120. During trading hours, as soon as the stock reaches INR 120, the sell order will be executed.
