InsiderFlowGlossary › What is a limit order?

What is a limit order?

A limit order sets the maximum price you'll pay to buy (or the minimum to sell): total price control, no execution guarantee.

"Buy at 50 or less": if the stock never reaches 50, the order waits. It's the opposite of a market order: you give up execution certainty in exchange for price certainty.

It's the patient investor's tool: you decide your fair price calmly and let the market come to you. It eliminates slippage and protects you from wide spreads.

Concrete example

If a stock trades at 52 and you place a buy limit at 48, you'll only buy if it falls there: maybe it never does, but if it does, you paid your price.

How you see it in InsiderFlow

On InsiderFlow these concepts come alive on real data: what big funds and insiders are buying, explained every day.

Frequently asked questions

Does a limit order have downsides?

Yes: the stock can run away without ever touching your price. That's the cost of discipline.

How long does a limit order last?

It depends on the chosen validity: day-only or "good till cancelled" (weeks or months).

Related terms

What is a market order?What is a stop loss?What is the bid-ask spread?