The limit order calculator lets you enter a maximum or minimum price per share that you’re willing to pay (with a buy limit) or accept (with a sell limit). Your order will only execute if the market hits your designated price or better. That gives you more control over your trade execution, but it also means that your order may not execute at all or may only be partially executed.
The best way to determine your limit order price depends on your individual investing preferences and trading strategy. In general, you want to choose a price that won’t move the market as much as possible. If you’re buying, that’s often the lower end of the range that you’re comfortable paying for a security; in a selling scenario, it can be your highest-priced target.
Why You Need a Limit Order Calculator for Smart Trading
When setting your limit order, make sure that you take into account the liquidity of the market, which can affect how easily and quickly your trade executes. Low-liquidity conditions might mean that even if the market hits your limit price, there won’t be enough buyers or sellers to fulfill your order.
For more information on determining your limit order price, see this article from Bankrate.
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