: You can set orders in advance and "walk away," as they execute automatically when your target price is met.
: If the market moves away from your price, you might miss out on a profitable trade entirely. what is a limit order when buying stocks
: You are guaranteed to pay your specified price or less (for a buy) or receive your specified price or more (for a sell). : You can set orders in advance and
The choice between these two types depends on whether you value a or a guaranteed execution . what is a limit order when buying stocks
: If a stock is currently trading at $17 but you only want to pay $14.50, you place a buy limit order at $14.50. The order remains pending until the price hits $14.50 or less.