What Is Limit Order on Penny Stocks?

Limit Order!! is the key for investors in penny stocks.

Many sites and forums about penny stocks recommended and create topics many times about "Limit Orders" on penny stocks but...

- What is this limit order?
- Why do you should use them?
- When to use limit orders,
- How to increase/place/use limit orders on penny stocks. , etc.

Well, many questions follow us but right now, let's find out and learn what is limit order.

Limit Order On Penny Stocks

Limit Order is an order for a broker to buy a stock at or below a certain price (or better) or to sell a stock at or above a certain price. A limit order allow you to make sure that you will get a specific price or better. It can guarantees a price or better. However, limit order can't guarantee execution.

When Investors who decide to trade a price they calculated, will use limit order. Limit order is important for you to buy penny stocks or stocks that have low volume or highly volatile stocks.

Limit order will be set with the maximum your security's cost or the minimum you accept on a transaction. It also allow investors to limit a time's length an order can be outstanding before being canceled. Therefore, market order is the opposite of a limit order too.

Source: Investopedia