Finschool By 5paisa

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With a buy limit order, traders can decide how much they will spend for an asset and can acquire it at or below a given price. A limit order ensures that the investor will pay that amount or less when making a transaction.

The order being filled is not guaranteed, but the price is. A buy-limit order won’t be carried out, after all, unless the asking price is equal to or lower than the specified limit price. The order is not filled and the investor may lose out on the trading opportunity if the asset does not reach the predetermined price.

To put it another way, the investor is assured to pay the purchase limit order price or better when utilizing a buy limit order, but there is no guarantee that the order will be honoured. A buy limit order is an appropriate order to employ if an investor anticipates that the price of an asset will decrease. A market order to purchase stop limit order is a preferable option if the investor doesn’t mind paying the present price or more if the asset starts to appreciate.

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