What is a buy limit order & sell limit order?

When you place a limit order, you are telling a broker to buy or sell shares of stock when and only when the price is right. A buy limit order tells your broker to purchase shares once a stock falls below a certain price—the so-called limit price. With a sell limit order, a broker only sells your shares once the stock rises above a set limit price.

What is a buy stop-limit order?

A buy stop-limit order combines features of a stop with a limit order. To place a buy stop-limit order, you need to decide on two price points. The first price point is the stop, which is the start of the trade's specified target price. The second price point is the limit price, which is the outside limit of the trade's price target.

What happens if a buy limit order is not filled?

If the stated price is not reached by the asset, the order will not be filled, meaning missed for the investor. 1 A buy limit order allows investors to pick a specific price and assures that they will only pay that price or better. A buy limit order will only execute when the price of the stock is at or below the specified price

What is a buy limit?

A buy limit, however, is not guaranteed to be filled if the price does not reach the limit price or moves too quickly through the price. Buy limits control costs but can result in missed opportunities in fast-moving market conditions. All order types are useful and have their own advantages and disadvantages.