It helps you control the maximum price you are willing to pay for a security or the minimum price you are willing to accept for selling it. This is a useful tool for investors who want to have more control over their trades.
A Limit Order is a strategic tool utilized by investors to set a desired price for buying or selling a security. By setting a limit price, investors can ensure they do not pay more than a certain amount for a security or receive less than a certain amount when selling. This allows for greater control over trades and helps investors make more informed decisions. In essence, a Limit Order enables investors to determine the maximum or minimum price they are willing to pay for a security, providing a level of protection and flexibility in their investments.
