Business / Taxes / Limit Price: A limit price is the specific price at which you tell your stockbroker to execute a buy or sell order on a particular security. If the transaction can be completed at that price, it goes through, but if that price is not available, no purchase or sale takes place. The advantage of a limit order is that you won’t pay more or sell for less than you want. Since your broker is monitoring the price, it is more likely that the trade will take place at the limit price than if you waited until the security reached that price to place your order. The potential drawback of setting a limit price, which is also known as giving a limit order, is that the transaction may not take place in a fast market if the price of the security moves up or down quickly, passing the limit price.
Limit Verb Synonyms: set, define, determine, fix
Limit Noun Synonyms: check, curb, bridle, restrict, restrain, hold in check
Price Verb Synonyms: sacrifice, toll, penalty, cost, consequence
Price Noun Synonyms: charge, cost, expense, expenditure, outlay, payment, amount, figure, fee, quotation, appraisal, value, valuation, evaluation, worth
Business / Finance / Maximum Price Fluctuation: The greatest amount by which the contract price can change, up or down, during one trading session, as fixed by exchange rules in the contract specification. Related: Limit price. MORE
Business / Finance / Stop-Limit Order: An order given a depository institution not to pay out cash for a check; often used when the check has been stolen or lost. MORE