What is a Limit Order?
A Limit Order is an Order to buy or sell at a specified price or better. Buy Limit Orders will be executed at the specified price or lower, Sell Limit Orders will be executed at the specified price or higher.
Keep in mind, limit orders aren't guaranteed to execute. Limit orders will only be executed if the price of the stock increases/decreases to the set limit price.
How do Buy Limit orders work?
With a buy limit order, a stock is purchased at your limit price or lower. Your limit price should be the maximum price you want to pay per share.
Example:
Stock X is currently trading at $5 per share, but you're only interested in buying the stock if the stock price goes below $4 per share at most. So, you'd set your limit price to $4.
If stock price of X drops from $5 to $4 or lower, your order will be executed (in full or partially) at $4 or lower.
If stock price of X doesn’t drop to $4, your order won’t execute.
How do Sell Limit orders work?
With a sell limit order, a stock is sold at your limit price or higher. Your limit price should be the minimum price you want to get per share.
Example:
Stock X is currently trading at $5 per share, but you're only interested in selling the stock if the stock price goes above $6 per share at least. So, you'd set your limit price to $6.
If stock price of X rises from $5 to $6 or higher, your order will be executed (in full or partially) at $6 or higher.
If stock price of X doesn’t rise to $6, your order won’t execute.
You can place a limit order on the Revolut app. On the order screen, please tap on the market order dropdown, in the top right corner. You can select the type as 'Limit order' and enter the limit price value.
We support Good Till Cancelled (GTC) Orders. You can set up Limit Orders with expiry date of up to six months (you can choose from four options and set the order to expire on the same day, in 90 days, in six months. Alternatively, you can elect a custom date – any trading day in the next six months).
At the moment, you can't trade fractional shares on Limit orders.