What is Limit Order in Order Type?

A Limit Order is an order to buy or sell a security at a specified price or better. In this order type, the client defines:

For a Buy Limit Order, the trade executes at the set price or lower.

For a Sell Limit Order, the trade executes at the set price or higher. Unlike a market order, a limit order does not guarantee execution, as it will only be fulfilled if the market price reaches the specified level. However, it does guarantee price protection, ensuring that the trade will not occur at a less favourable price than specified.

Examples:

• Buy Limit Order at ₹100: Will only be executed at ₹100 or lower.
• Sell Limit Order at ₹200: Will only be executed at ₹200 or higher.

• Limit orders are useful when price control is more important than immediate execution.