Glossary
Limit order: meaning, example and why it matters
An order to buy or sell at your chosen price or better. It may not execute if the market never reaches that price.
Worked example
You place a limit order to buy at ₹498 while the stock trades at ₹500. It executes only if sellers will trade at ₹498 or lower. If the price never falls that far, the order stays unfilled.
Illustrative numbers for explanation only. They are not market data, a forecast or a suggestion.
Why it matters
A limit order gives control over the price at the cost of certainty that it will execute.
Related terms
See it in practice
Frequently asked questions
Does a limit order always execute?
No. It executes only at your price or better, so if the market never reaches that level the order stays open or lapses.
Is this page investment advice?
No. Limit order is explained in general terms with illustrative numbers. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser.
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Educational content, not investment advice. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser. Spotted a mistake? Email marketdekho01@gmail.com.