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Limit order explained.

An order with a price condition: a buy limit sets a maximum purchase price and a sell limit sets a minimum sale price. A qualifying execution is not guaranteed.

Risk & orders

Limit order

An order with a price condition: a buy limit sets a maximum purchase price and a sell limit sets a minimum sale price. A qualifying execution is not guaranteed.

Example: A $30 buy limit may remain open while available asks stay above $30.

Watch for: Assuming a price boundary guarantees that the entire order will fill.

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