Limit Orders
A Limit order is an order to buy or sell at a specified price or better. The Limit order ensures that if the order fills, it will not fill at a price less favorable than your limit price, but it does not guarantee a fill.
Notes:
- Nasdaq RTH LMT orders entered prior to the open cannot be modified between 09:28 and the open.
The Reference Table to the upper right provides a general summary of the order type characteristics. The checked features are applicable in some combination, but do not necessarily work in conjunction with all other checked features. For example, if Options and Stocks, US and Non-US, and Smart and Directed are all checked, it does not follow that all US and Non-US Smart and direct-routed stocks support the order type. It may be the case that only Smart-routed US Stocks, direct-routed Non-US stocks and Smart-routed US Options are supported.
| Products | Availability | Routing | Category | ||||
|---|---|---|---|---|---|---|---|
| Bonds | US Products | Smart | Attribute | ||||
| Crypto | Non-US Products | Directed | Order Type | ||||
| EFPs | Lite | Time in Force | |||||
| Forex | |||||||
| Futures | |||||||
| FOPs | |||||||
| Options | |||||||
| Stocks | |||||||
| Warrants | |||||||
| Note that direct-routed, non-marketable limit orders may be rejected if the specified destination does not support them. | |||||||
| View Supported Exchanges|Open Users' Guide | |||||||
Limit Order Type Short Video
Using TWS Mosaic
Using Classic TWS
For more short videos, see our IB Short Videos, Courses & Tours section.
Mosaic Example - Limit Order
In the Order Entry panel enter the required ticker symbol. In this example we want to enter an order to sell an entire 400-share position in ticker symbol XLF at no less than $24.50. Clicking the Sell button will turn the background red, while an order to buy will turn the background blue. Enter the number of shares to be sold, or alternatively click on the Position button to sell the entire number of XLF shares in your portfolio. Next, select the LMT order type from the dropdown menu and enter the desired limit price in the field. For sell orders, investors typically set a price above the prevailing NBBO while for orders to buy the chosen limit price is typically below the NBBO. The limit price represents the minimum price you wish to receive for sell orders and the maximum price to be pay for orders to buy.
| Assumptions | |
|---|---|
| Action | SELL |
| Qty | 400 |
| Order Type | LMT |
| Market Price | 24.44 |
| Limit Price | 24.50 |
Next, choose how long your order should remain intact by selecting from the time-in-force dropdown menu. In this example the choice of DAY means that the order must fill in the current session at the desired limit price or else it will be cancelled at the end of the day. Finally, click on the Submit button to transmit your order to the market.
For buy orders, follow the instructions but first hit the BUY button and enter a limit price below the NBBO.
Classic TWS Example - Limit Order
Order Type In Depth - Limit Buy Order
Step 1 – Enter a Limit Buy Order
XYZ stock has a current Ask price of 34.00 and you want to use a Limit order to buy 100 shares when the market price falls to 33.50.
You create the Limit order as shown above.
| Assumptions | |
|---|---|
| Action | BUY |
| Qty | 100 |
| Market Price | 34.00 |
| Order Type | LMT |
| Limit Price | 33.50 |
Step 2 – Order Transmitted, Market Price Begins to Fall
As soon as you transmit your Limit order, the market price of XYZ stock begins to fall.
| Assumptions | |
|---|---|
| Market Price | 34.00 and falling |
| Order Type | LMT |
| Limit Price | 33.50 |
Step 3 – Market Price Falls to Limit Price, Order Filled
The market price of XYZ continues to fall until it touches your Limit Price of 33.50. Your order for 100 shares is filled.
| Assumptions | |
|---|---|
| Market Price | 33.50 |
| Order Type | LMT |
| Stop Price | 33.50 |
Order Type In Depth - Limit Sell Order
Step 1 – Enter a Limit Sell Order
You're long 200 shares of XYZ stock at an Average Price of 14.95 (your entry price). You want to make a profit of at least 50.00, so you use a Limit order to sell 200 shares when the market price rises to 15.20.
You create the Limit order as shown above.
| Assumptions | |
|---|---|
| Average Price | 14.95 |
| Action | SELL |
| Qty | 200 |
| Market Price | 15.16 |
| Order Type | LMT |
| Limit Price | 15.20 |
Step 2 – Market Price Begins to Rise
As soon as your transmit your Limit order, the market price of XYZ stock begins to rise.
| Assumptions | |
|---|---|
| Average Price | 14.95 |
| Action | SELL |
| Qty | 200 |
| Market Price | 15.16 and rising |
| Order Type | LMT |
| Limit Price | 15.20 |
Step 3 – Market Price Rises to Limit Price, Order Filled
The market price of XYZ continues to rise until it touches your Limit Price of 15.20. Your order for 200 shares is filled and you've earned a profit of 50.00.
| Assumptions | |
|---|---|
| Average Price | 14.95 |
| Action | SELL |
| Qty | 200 |
| Market Price | 15.20 |
| Order Type | LMT |
| Limit Price | 15.20 |
Note:
In accordance with our regulatory obligations as a broker, IB may set a price ceiling for a buy order or a price floor for a sell order. This may result in your order being delayed or not executing. For more information on price capping of orders, please see: ibkr.com/pricecap.