What is a limit order?

A limit order allows investors to buy and sell securities at a specific limit price or better. Investors often use limit orders to have more control over execution prices. With a limit order, the range of price is specified by the investor, but the order may not be executed at exactly the price specified. It can be executed at a more favorable price than the specified one. 

For buy orders, a limit order will only be executed at the specified price or lower. For sell orders, a limit order will be executed at the specified price or higher. 

Please note: If the stock price does not reach the specified price, a limit order will not be executed.