Limitaufträgen

Limitaufträgen, also known as limit orders, are a type of order used in financial markets to buy or sell a security at a specific price or better. When placing a limit buy order, an investor specifies the maximum price they are willing to pay for a security. The order will only be executed if the market price falls to or below the specified limit price. Conversely, a limit sell order allows an investor to set the minimum price at which they are willing to sell a security. This order will only be executed if the market price rises to or above the specified limit price. Limit orders provide investors with greater control over the execution price of their trades, preventing them from buying at a higher price than intended or selling at a lower price than desired. They are particularly useful in volatile markets or when an investor has a precise target price in mind. However, there is no guarantee that a limit order will be executed. If the market price never reaches the specified limit, the order will expire without a trade occurring. This contrasts with market orders, which are executed immediately at the best available price, regardless of the price.