Limit Price

The limit price allows you to choose a specific price to buy or receive for an asset.

On a purchase order, the limit price would be the maximum amount you are willing to pay for each share.

On a sell order, the limit price would be the minimum amount you are willing to receive per share.

Limit Order

A limit order is an order that can only be executed at a specific price or better. Investors usually use limit orders to have more control over the execution price.

Please note that the execution of limit orders is not guaranteed. There must be a buyer and a seller on each side of the transaction. If there is not enough stock in the market at your limit price, it may take several trades to complete the entire order, or the order may not complete at all.

Buy Limit Order

With a buy limit order, you buy a share at your limit price or at a lower price. Your limit price should be the maximum price you are willing to pay per share.

Example:

HAPIS is currently trading at $20 per share, but you are only willing to pay a maximum of $15 per share. So you set a limit buy order with a limit price of $15.

• If HAPIS drops from $20 to $15 or less, and stocks are available, your order should be executed at $15 or less.

• If HAPIS does not drop to $15, your order will not be executed.

(This example is shown for illustrative purposes only. In general, understanding order types can help you manage risk and execution speed. However, you can never completely eliminate market and investment risks, it’s usually better to choose an order type based on your investment goals and objectives.)

Sell Limit Order

With a sell limit order, a share is sold at your limit price or higher. Your limit price should be the minimum price you are willing to receive per share.

Example:

HAPIS is currently trading at $15 per share, but you are only willing to receive at least $20 for each share. So you set a sell limit order with a limit price of $20.

• If HAPIS increases from $15 to $20 or more, and stocks are available, your order should be executed at $20 or more.

• If HAPIS doesn’t go up to $20, your order will not be executed and you will keep your shares

(This example is shown for illustrative purposes only. In general, understanding order types can help you manage risk and execution speed. However, you can never completely eliminate market and investment risks, it’s usually better to choose an order type based on your investment goals and objectives.)

Still have questions about limit orders? Reach out to us at contacto@imhapi.app, we are here to help you!