GLOSSARY TERM
Limit Order
A limit order is an order to buy or sell an investment at a specific price or better.
What does this mean in practice?
When you place a limit order, you set the maximum price you are willing to pay when buying or the minimum price you are willing to accept when selling. The trade only happens if the market reaches that price. If the price is not reached, the order may stay unfilled.
Example
If an ETF is trading around €100, you can place a limit order to buy at €99. Your order will only go through if someone is willing to sell to you at €99 or lower. If the price stays above €99, nothing is bought.
Why it matters
A limit order gives you more control over the price you pay or receive. For long-term investors, it can be useful when buying less liquid ETFs or when you want to avoid paying more than expected in a fast-moving market.
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