The choice between these two types depends on whether you value a or a guaranteed execution .
: You are guaranteed to pay your specified price or less (for a buy) or receive your specified price or more (for a sell). what is a limit order when buying stocks
When you place a limit order to buy, you set a "price ceiling"—the maximum amount you are willing to pay per share. The trade will only trigger if the stock's market price falls to your limit price or lower. The choice between these two types depends on
: If a stock is currently trading at $17 but you only want to pay $14.50, you place a buy limit order at $14.50. The order remains pending until the price hits $14.50 or less. The trade will only trigger if the stock's
: If the market moves away from your price, you might miss out on a profitable trade entirely.
: You can set orders in advance and "walk away," as they execute automatically when your target price is met.
: There is no guarantee the order will be filled. If the stock never reaches your specified price, the trade will not occur. Key Benefits and Risks