Glossary · PSX term

Limit order.

A limit order sets the maximum price you will pay to buy or the minimum you will accept to sell.

Definition

A limit order only executes at your price or better, giving you price control but no guarantee it fills. It is useful in volatile or illiquid stocks where you do not want to overpay or undersell.

Worked example

Placing a limit buy at Rs. 98 means you will not pay more than Rs. 98, even if the stock trades higher.

Related on PSX Clarity

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