Limitpreis

Limitpreis, in finance, is a price limit used in a limit order to buy or sell a security. The term is commonly used in German-speaking markets, where the English equivalent is “limit price.” A buy limit order specifies the maximum price the buyer is willing to pay; the order will be executed at the limit price or lower. A sell limit order sets the minimum price the seller is willing to accept; the order will be executed at the limit price or higher. The order is placed in the market’s order book and will be matched only when the market price reaches the specified limit or a more favorable price.

Limit orders can be time-bound, such as day orders that expire at market close, or good-til-canceled (GTC), remaining active until filled or canceled. Execution may result in partial fills if only part of the order can be matched at the limit price. If the market price never reaches the limit, the order may remain unfilled.

Advantages of using a limitpreis include protection from unfavorable price movements and control over the maximum price paid or minimum price received. Risks include the possibility that the order is not filled at all, which can result in missed trading opportunities, particularly in fast-moving markets. Traders may use limit orders to manage entry and exit points, avoid slippage, or execute strategic price levels while allowing for price improvement if market conditions move favorably.