Options Glossary

Glossary: Limit Order

Last Updated: July 12, 2015


Limit Order

What Does Limit Order Mean in Options Trading?

An order that is placed in the market to be executed at a set price. If the set price is not reached in the market, this type of order never gets filled. It is wise for traders to use limit orders when the option contract has a wide bid-ask spread and/or low liquidity.

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