Limit Order is one that is place with a broker to buy or sell a security at a price that is as good or better than the specified limit price. For example, I want to buy AAPL stock for under $90. I can set a Limit Order for AAPL at $90. The stock will not be purchased unless AAPL falls to or below $90. The same applies for selling a stock. Some investors set limit sells to protect against major losses.
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