| Limit Order |
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An
order placed with a brokerage to buy or sell at a predetermined amount
of shares at a specified price or better than the specified price.
Limit orders also allow an investor to limit the length of time an
order can be outstanding before canceled.
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Limit
orders typically cost slightly more than market orders but are always
a good idea to use because you will always purchase or sell securities
at that price. Limit orders are especially useful on a low volume
or highly volatility stock. |
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Dictionary
