A limit order is an order to trade a security at a specified price or better.

• For example, an investor wants to invest in ABC stock. She enters a buy limit order at $27 when the market price is $30. Her order will only be executed when the stock price drops to $27 or below. If the price never falls to $27, the order will not be filled.
• Investor B wants to sell his ABC shares. He places a sell limit order at $30 when the stock price is $27. His order will only be executed when the stock price reaches $30 or above. If the price never reaches $30, the order will not be filled.

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To sum up:

A limit order will not be executed unless the limit price is met. It guarantees the filling price, but it does not guarantee filling. It is possible a limit order may never be filled. This is different from a market order, which is typically executed at the time of the order with an uncertain filling price.

Limit order enables investors to trade within a price range in volatile situations. But for those who want to seize the trading opportunity at whatever costs, a limit order might not be a good choice.

Tips:

• On Webull, we support placing limit orders in both market and extended hours.
• You can choose a Day order if you only want your order to last for a day. If you want your order to last longer, use a Good ‘Till Canceled order, which will last for 60 days (including weekends and holidays).

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‌Reference:

https://www.investopedia.com/terms/l/limitorder.asp

https://www.webull.com/help/faq/305-What-is-Time-in-Force-for-an-order

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