You place a limit order to buy at $50.00. At what prices can this order execute?
- A. At $50.00 or lowerCorrect
- B. At any price within 5% of $50.00
- C. Only at exactly $50.00
- D. At $50.00 or higher
Takeaway. A limit price is a boundary in the direction that favors you: buy at the limit or lower, sell at the limit or higher, and never the other way round.
