Investing Hacks: Taking Control of Your Trades with Limit Orders

Moomoo Learn wrote a column · Aug 6, 2023 22:41

Do you know how to buy and sell your favorite stocks? You can find the answer by exploring the features on moomoo!

You might think it's too complicated to understand a dozen different types of orders. Don't worry! Moomoo Learn will explain these different order types.

Investing Hacks: Taking Control of Your Trades with Limit Orders

Limit Orders: The price is decided by yourself. You need to pay attention to the price and quantity.

Limit orders can only be executed at that specified price or better.
For example, if you place a limit order to buy 500 TUTU shares at $11, you can't buy them at more than $11. If an investor wants to sell 500 TUTU shares at $10.5, the order may be filled at $10.5.

Advantages of Limit Orders
Orders can be filled at or better than the user's desired price.

Disadvantages of Limit Orders
You may have to wait a moment before orders are matched and filled. Additionally, limit orders are not guaranteed to be executed. A limit order can only be filled if the stock’s market price reaches the limit price.

Demystifying the practical order types, Moomoo Learn will talk about market orders in the next article.
Cannot wait? Check out a featured course: How to Use Order Types .

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