What is a Limit Order - Trading in US (TnG)?

A limit order is an order to buy or sell, and has a specified limit price at the time of entry. A limit order can be executed at the limit price or at better prices.

A buy limit order can only be matched at the limit price or lower; and a sell limit order can only be matched at the limit price or higher. An incoming limit order can match with multiple orders on the opposite site of the order book at prices up to the limit price specified.

Example: Assume the current market price is USD20:

BUY: If you submit a buy limit order at USD18, and later the market price drops to USD18, the buy limit order will be triggered and filled at a price no more than USD18 (assuming there are sufficient shares to fill your order).

SELL: If you submit a sell limit order at USD22, and later the market price rises to USD22, the sell limit order will be triggered and filled at a price no less than USD22 (assuming there are sufficient shares to fill your order).

Reminder: When the set limit price exceeds the latest price by +/- 20%, your orders may be cancelled by the exchange.