What is a limit order?

When you set a specific price to trigger a buy or sell order, it's called a limit order. For example, let's say you want to buy a stock for $5.00 or less. You can enter a buy limit order at $5.00, and we'll only purchase the stock if it trades at $5.00 or less per share. If the stock trades above that price, the order won't fill.

For a sell limit order, let's say you want to sell a stock at $10.00 or higher per share. You can create a sell limit order, and we'll sell your shares if the stock is trading at $10 or above.

Important: In certain circumstances, it may not be possible to fill a limit order in a single market day. In these cases, ShareBuilder may partially fill the order over multiple days, which can lead to multiple charges of the real-time trade commission.

For full transaction cost details, check out our Pricing & Rates.