Limit order in stock market is the same as orders in futures trading, it means an order which only buy or sell stocks at a certain stock price or better.
For example:
- current stock price = $5
If you put a limit order to buy stocks online at $5, your order will only get filled if the stock price is at $5 or less than $5. So you don't have to worry if the stock price gaps up and the stock price you get is much higher than $5.
I know there is a risk of not getting filled if we use limit order, but please remember safety comes first. Use limit order to buy stocks online and be carefull in use stocks as investing tool, why? because online stock investing is not easy.
Are you a stock investor? http://investinginstock.blogspot.com/.
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