{"id":45315,"date":"2023-07-28T15:15:55","date_gmt":"2023-07-28T13:15:55","guid":{"rendered":"https:\/\/staging.captrader.com\/glossar\/limit-order\/"},"modified":"2024-03-27T15:24:44","modified_gmt":"2024-03-27T14:24:44","slug":"limit-order","status":"publish","type":"glossar","link":"https:\/\/www.captrader.com\/en\/glossar\/limit-order\/","title":{"rendered":"Limit order"},"content":{"rendered":"

With a limit order, investors can better control the price they pay for shares, ETFs and the like. Only if the condition of the limit order is met will it be executed. This makes limit orders a very useful form of order that helps to optimize our portfolio. You can find out how this works in practice and what you need to bear in mind when placing a limit order here. <\/span><\/p>\n\n\n\n

Limit Order Definition<\/span><\/h2>\n\n\n\n

A limit order is an order to the broker to complete a transaction as soon as the specified price or better has been reached. This type of order guarantees us the desired minimum price, but not the execution. Limit orders can be used to buy or sell shares or other asset classes. <\/span><\/p>\n\n\n\n

Limit orders therefore belong to the conditional order types: They contain a condition that must be fulfilled before execution can take place. The order is only executed once the limit price or a better price for the client has been reached. <\/span><\/p>\n\n\n\n

A sell limit order differs from a buy limit order. If we want to buy exchange-traded investments such as shares, we can place a buy limit order. To do this, we specify the maximum price we are prepared to pay, the number of shares we want and the term of the order. <\/span><\/p>\n\n\n\n

If our maximum price is reached or even undercut during the term, the order is executed and we receive the securities. A limit order can therefore also be executed at a price that is even lower, i.e. better for us, than the limit price - but never at a worse price!<\/span><\/p>\n\n\n

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If, on the other hand, we want to sell shares, we set a sell limit order, a limit price, number of shares and maturity. The limit price is the minimum that we want to receive for the securities. <\/span><\/p>\n\n\n\n

If this is reached or even rises higher, the order is executed and our shares are sold. Here too, a better price can be achieved than the minimum we have set, but never a worse one. <\/span><\/p>\n\n\n\n

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Limit orders offer investors better control over prices than would be the case with a market order. In contrast to a market order, however, the execution of a limit order is by no means guaranteed. If the limit price is not reached, the order remains unfulfilled and expires at the end of the term. <\/span><\/p>\n\n\n\n

How limit orders are used<\/span><\/h2>\n\n\n\n

Limit orders are used to execute buy or sell orders with a high degree of control over prices. Investors use them to ensure that they always achieve a desired price (or better price) for an exchange-traded asset. <\/span><\/p>\n\n\n\n

As execution is not guaranteed (the limit price may never be reached) and the time frame remains uncertain (it may take several days for the limit price to be reached), this form is not suitable for urgent transactions. Here, the market order is the method of choice, as it is executed immediately at the current best price. <\/span><\/p>\n\n\n\n

Even investors who do not want to constantly monitor the market often use limit orders to optimize their investments. The included condition allows us to place such orders in advance in order to prepare for various scenarios. <\/span><\/p>\n\n\n\n

A limit order is one of the two basic options for executing an order. It focuses on the price, while the market order prioritizes the time period as an alternative. <\/span><\/p>\n\n\n\n

Both variants have numerous special forms with which we can add further conditions or subtleties. For example, a buy stop limit order or a sell stop limit order can be used to realize orders with complex logic. <\/span><\/p>\n\n\n\n

Buy Limit Order Example<\/span><\/h2>\n\n\n\n

We would like to buy securities of a company that currently has a market value of \u20ac 20 per share. However, as this value is still too high for us, we place a buy limit order with our broker for 100 shares at a price of \u20ac15 with a term of 30 days. <\/span><\/p>\n\n\n\n

The price actually falls to 14 euros within the next 30 days. As this amount is below our limit price of 15 euros, which is better for us, the order is executed automatically and we receive the 100 shares for a total of 1,400 euros. <\/span><\/p>\n\n\n\n

Sell limit order example<\/span><\/h2>\n\n\n\n

We own 100 shares in a company that are currently trading at EUR 14 per share. If their price rises, we want to sell them and realize the profits. We therefore place a sell limit order with our broker for 100 shares at a price of 20 euros with a term of 30 days. <\/span><\/p>\n\n\n\n

The share price rises to 22 euros the following week! As this price is above our limit of 20 euros, which is better for us, our broker executes the order. The shares are sold from our securities account and we are credited 2,200 euros. <\/span><\/p>\n\n\n\n

How to place a limit order with CapTrader <\/span><\/h2>\n\n\n\n
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FAQ - Frequently asked questions about limit orders\u00a0<\/span><\/h2>","protected":false},"author":20,"featured_media":0,"template":"","class_list":["post-45315","glossar","type-glossar","status-publish","hentry"],"acf":{"blog_summary":"","blog_faq_schalter":"ja","faq_uberschrift":"","blog_faq_loop":[{"blog_faq_question":"Wie funktioniert ein Limit Order Verkauf?","blog_faq_answer":"Setzen Sie einen Limit Preis, zu dem Sie Ihre Aktien (oder anderes Asset) verkaufen wollen. Sobald dieser Wert - oder ein besserer - erreicht wird, werden Ihre Assets zum Verkauf angeboten. Findet sich ein K\u00e4ufer, wird das Gesch\u00e4ft abgeschlossen"},{"blog_faq_question":"Wie funktioniert ein Limit Order Kauf?","blog_faq_answer":"Wenn Sie Aktien oder andere Assets mit einer Limit Order kaufen wollen, legen Sie einen Preis fest, den Sie maximal zahlen m\u00f6chten. Die Transaktion wird nur ausgef\u00fchrt, wenn dieser Preis (oder ein besserer) erreicht wurde und ein Verk\u00e4ufer zur Verf\u00fcgung steht."},{"blog_faq_question":"Was ist eine Limit Order einfach erkl\u00e4rt?","blog_faq_answer":"Eine Limit Order ist ein Auftrag zum Kauf oder Verkauf von Aktien oder anderer Assets, bei dem Sie den Preis bestimmen k\u00f6nnen. Nur, wenn ihr gesetzter Preis (oder ein besserer Wert) erreicht wurde, wird das Gesch\u00e4ft ausgef\u00fchrt."},{"blog_faq_question":"Limit Order oder Market Order, was ist der Unterschied?","blog_faq_answer":"Eine Limit Order wird nur erf\u00fcllt, wenn ein von Ihnen gesetzter (oder besserer) Preis erreicht wurde. Die Ausf\u00fchrung ist daher nicht sicher und kann einige Zeit dauern. Market Orders werden sofort, zum aktuell besten Preis ausgef\u00fchrt."},{"blog_faq_question":"Wann sollte ich eine Limit Order nutzen?","blog_faq_answer":"Limit Orders geben Ihnen die M\u00f6glichkeit, Ihren pers\u00f6nlichen Wunschpreis festzusetzen. Sie sind daher ideal, wenn Sie Preisgrenzen haben, die nicht \u00fcberschritten werden sollten. Bei Verk\u00e4ufen ist das ein Minimalpreis, bei K\u00e4ufen ein Maximalpreis."},{"blog_faq_question":"Was ist ein Limit Order Beispiel?","blog_faq_answer":"Sie m\u00f6chten eine Aktie kaufen, sobald diese unter einen Preis von X Euro f\u00e4llt. Mit einer Limit Order k\u00f6nnen Sie X als Limit Preis angeben. Erst, wenn der Kurs unter X f\u00e4llt, wird die Order ausgef\u00fchrt. Sie erhalten garantiert X oder einen besseren Wert als Kaufpreis.\u00a0"}]},"_links":{"self":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/glossar\/45315","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/glossar"}],"about":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/types\/glossar"}],"author":[{"embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/users\/20"}],"wp:attachment":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/media?parent=45315"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}