limit order: meaning, definition, pronunciation and examples
C1-C2 / Very Low Frequency in General EnglishFormal, Technical
Quick answer
What does “limit order” mean?
In financial trading, an order to buy or sell a security at a specific price or better.
Audio
Pronunciation
Definition
Meaning and Definition
In financial trading, an order to buy or sell a security at a specific price or better; it sets a maximum price to buy or a minimum price to sell.
A trading instruction that provides price control but does not guarantee execution, commonly used to manage risk and entry/exit points in volatile markets.
Dialectal Variation
British vs American Usage
Differences
No significant differences in meaning or usage. Spelling conventions (e.g., 'ise' vs 'ize') do not apply to this term.
Connotations
Neutral technical term in both varieties.
Frequency
Equally low in general discourse but standard and frequent within the specialised domain of finance and trading in both regions.
Grammar
How to Use “limit order” in a Sentence
to place a limit order for [security] at [price]to set a limit order to [buy/sell] [security]The limit order [was executed/expired].Vocabulary
Collocations
Examples
Examples of “limit order” in a Sentence
verb
British English
- I will limit-order the shares at £10.
- He limit-ordered the stock as per his strategy.
American English
- I'm going to limit order the shares at $12.
- She limit-ordered the commodities yesterday.
adjective
British English
- The limit-order functionality is crucial.
- They discussed limit-order strategies.
American English
- The limit-order feature is essential.
- He prefers a limit-order approach.
Usage
Meaning in Context
Business
Standard term in finance, investment, and trading discussions.
Academic
Used in economics and finance papers.
Everyday
Virtually never used unless discussing personal investing.
Technical
Core, precise term in trading platforms and broker communications.
Vocabulary
Synonyms of “limit order”
Neutral
Weak
Vocabulary
Antonyms of “limit order”
Watch out
Common Mistakes When Using “limit order”
- Using 'limit order' to mean any kind of restriction (e.g., 'I put a limit order on my spending' – incorrect).
- Confusing it with 'stop order' or 'stop-loss order', which are different order types.
FAQ
Frequently Asked Questions
The order will not be executed and will eventually expire (based on its time condition) or remain pending until cancelled.
Brokerage commissions may still apply if the order is executed; placing the order itself typically does not incur a separate fee.
A buy limit order sets a maximum price you are willing to pay. A sell limit order sets a minimum price you are willing to accept.
Yes, limit orders often have time conditions like 'day order' (valid for one trading day) or 'good-till-cancelled' (GTC).
In financial trading, an order to buy or sell a security at a specific price or better.
Limit order is usually formal, technical in register.
Limit order: in British English it is pronounced /ˈlɪm.ɪt ˌɔː.dər/, and in American English it is pronounced /ˈlɪm.ɪt ˌɔːr.dɚ/. Tap the audio buttons above to hear it.
Learning
Memory Aids
Mnemonic
Think of a 'limit' as a price fence. A 'limit order' is an instruction that only lets the trade happen on your side of the fence.
Conceptual Metaphor
TRADING IS A CONTROLLED PROCEDURE; PRICE IS A BOUNDARY.
Practice
Quiz
What is the primary purpose of a limit order?