What is a Limit Order?
A Limit Order is an Order to buy or sell at a specified price or better. Buy Limit Orders will be executed at the specified price or lower, Sell Limit Orders will be executed at the specified price or higher.
Keep in mind, limit orders aren't guaranteed to execute. Limit orders will only be executed if the price of the stock increases / decreases to the set limit price.
How do Buy Limit orders work?
With a buy limit order, a stock is purchased at your limit price or lower. Your limit price should be the maximum price you want to pay per share.
Stock X is currently trading at $5 per share, but you are only interested in buying the stock if the stock price goes below $4 per share at most. You would set your limit price to $4.
If stock price of X drops from $5 to $4 or lower, your order will be executed (in full or partially) at $4 or lower.
If stock price of X doesn’t drop to $4, your order won’t execute.
How do Sell Limit orders work?
With a sell limit order, a stock is sold at your limit price or higher. Your limit price should be the minimum price you want to get per share.
Stock X is currently trading at $5 per share, but you are only interested in selling the stock if the stock price goes above $6 per share at least. You would set your limit price to $6.
If stock price of X rises from $5 to $6 or higher, and you have enough shares to sell, your order will be executed (in full or partially) at $6 or higher.
If stock price of X doesn’t rise to $6, your order won’t execute.
You can place a limit order on the Revolut app. On the order screen, please click on market order dropdown on the top right corner. You can select the type as Limit order and enter the limit price value.
On the Revolut app, currently you can only execute Limit orders with 1 day expiry. However, we are working on the functionality to introduce limit orders with no expiry.
At the moment, you cannot trade fractional shares on Limit orders.
Getting started with trading
- How do I open a trading account?
- What types of trading accounts are supported?
- Funding my investment account
- Why should I provide information about my income and occupation to trade?
- How do I submit documents?
- I am associated with another broker-dealer. Can I still open a trading account?
- I don't have an SSN, can I still open an account?