A Limit Order lets you specify the price at which you want to buy or sell a stock or contract. This ensures that your order only executes if the market reaches your set limit price or a more favorable one.
How Limit Orders Work:
- Buy Limit Orders: Executed at your specified limit price or lower, giving you the best possible price as a buyer.
- Sell Limit Orders: Executed at your specified limit price or higher, ensuring the best price for the seller.
Rules for Limit Prices:
- Circuit Limits for Stocks: Limit prices for stocks must fall within circuit limits, which are upper and lower price bands set to control market volatility. You can view these limits on the order page.
- Price Bands for F&O (Futures and Options): Limit prices in F&O must follow exchange-defined price bands, which can adjust based on market conditions.