Limit Order
A limit order sets the price you are comfortable with. It helps you stay in control of the deal, even if the market keeps moving.
Start the lessonIntroduction
Set a price boundary for your order
A limit order tells your broker the price you are willing to accept. If you are buying, it is the most you are willing to pay per share. If you are selling, it is the least you are willing to receive.
The short answer
A limit order gives you price control, but the trade may not happen if the market does not reach your price.
Buy and sell limits
Maximum to buy, minimum to sell
Your order can match only when an available opposite order meets your price condition.
Limit buy
You set the maximum price you are willing to pay. For example, a ₹100 limit buy will not pay ₹102 or more.
Limit sell
You set the minimum price you are willing to accept. For example, a ₹102 limit sell will not sell for ₹100.
Try the example
Would your limit price meet this order book?
Illustrative best available seller: ₹102. Illustrative best available buyer: ₹100.
Illustrative order book
- Best available sell price
- ₹102
- Best available buy price
- ₹100
The limit price does not meet the illustrated opposite price.
Would not match at these prices
At your limit price, 10 shares have a maximum or minimum value of ₹1,000.
This is a simplified example, not a live quote. Meeting the price condition does not guarantee a fill: available quantity, order priority, market changes, and exchange rules also matter. An order may be partly filled or remain unfilled.
Limit vs market order
Price control or execution priority?
Key points
What to remember
- A limit buy sets your maximum purchase price.
- A limit sell sets your minimum selling price.
- A limit order can remain unfilled if prices do not match.
- Meeting the price condition does not guarantee a full fill.
- The order may be partly filled, depending on available quantity.
- A market order prioritizes execution instead of setting a price boundary.
This lesson is for education only, not personalized financial, tax, or investment advice. Investments in securities are subject to market risks.
Test yourself
5-question quiz
Choose one answer for each question, then check your score.