Limit Order

limit-order-option-tradingLimit Order is an order requested to a broker regarding the purchase or sale of specified number of shares at a determined price or higher than that is called as Limit Order. You can thus determine the amount of time for which the order placed can stay outstanding before it stands void.

They are usually expensive as compared to the market orders. However, they are still beneficial. This is because when the trade actually takes place, an investor earns the specified price (it can be purchase price or sell price). These orders stand useful on  a stock having either low volume or high volatility.

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October 5, 2008 · Filed Under Options Trading Strategies

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