What Is a Limit Order?

A limit order is a powerful tool in an investor's arsenal, allowing them to buy or sell a stock at the price they want.

white stock chart with red and green bar charts with green Buy and red Sell labels
(Image credit: Getty Images)

As discerning investors, maximizing our investment strategies is of paramount importance. Among the myriad of tools at our disposal, a limit order stands out as a potent instrument that can significantly impact our trading outcomes. 

In this article, we'll explore the concept of limit orders, unraveling their mechanics and strategic benefits. By delving into the precise world of limit orders, we equip ourselves with the knowledge to make informed decisions and achieve our investment goals with utmost precision and control.

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Jared Hoffmann
Contributing Writer, Kiplinger.com

Jared Hoffmann is a highly respected financial content creator and options expert, holding a journalism degree from San Francisco State University. Formerly a Senior Options and Day Trading Editor and on-air personality at Money Morning, he excels in delivering comprehensive options education, technical analysis, and risk management education to traders.