Limit Order

A limit order is a strategy employed in the stock market to execute the buying or selling of a security. In this order type, you establish a particular price or a more favorable one. For example, in a selling scenario, the order is triggered only when the price reaches or surpasses the limit you've specified. Conversely, when purchasing, the order is initiated when the price reaches your set limit or falls below it.

Example:

If you place a buy limit order for a stock at ₹500, the order will be executed only when the stock’s price falls to ₹500 or lower. Similarly, a sell limit order at ₹550 will execute only when the price rises to ₹550 or higher.