What is Limit Order & How is it Used?

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What is limit order and how is it used this is Ravi he wants to know about limit order and how it is used Ashish his friend and a seasoned investor with Angel One explains suppose the shares of Lakshmi textiles are trading at one hundred and fifty rupees per share you want to buy shares in this company but think the market price is too high so you said 125 rupees per share as the maximum price at which you are willing to buy if the market value of the shares tips to 125 rupees Angel One your trusted brokers will purchase the shares of Lakshmi textiles for you similarly if you hold shares off Lakshmi textiles you can set an amount say 175 rupees as the minimum price at which you will sell your shares as soon as the market value of these shares increases to 175 rupees or higher your broker will sell your shares if the market value remains below 175 rupees he will continue to hold these shares limit orders therefore help you control the price at which you buy and sell stock Ravi now understands what limit order is and how to use it.