What is Buy Limit? - Definition & Explanation

Definition

A pending order to buy at a price below the current market price.

Buy Limit Explained

A buy limit order instructs your broker to buy at a specified price lower than the current market price. It is commonly used to buy at support levels or to "buy the dip" in an uptrend.

Related Terms

Buy Stop

A pending order to buy at a price above the current market price.

Buy Limit - Frequently Asked Questions

If price never reaches your limit price, the order remains pending until you cancel it or it expires.

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