When you place a limit order to buy, you set a "price ceiling"—the maximum amount you are willing to pay per share. The trade will only trigger if the stock's market price falls to your limit price or lower.
The choice between these two types depends on whether you value a or a guaranteed execution . what is a limit order when buying stocks
: Limit orders are often the only order type allowed during pre-market or after-hours sessions. When you place a limit order to buy,
: You are guaranteed to pay your specified price or less (for a buy) or receive your specified price or more (for a sell). : Limit orders are often the only order
: 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.
: There is no guarantee the order will be filled. If the stock never reaches your specified price, the trade will not occur. Key Benefits and Risks