Limit Order – A type of order to buy or sell a security at a specified price or better. For buy limit orders, the order will only be executed at the specified limit price (or a lower price). For sell limit orders, the order will only be executed at the specified limit price (or a higher price). Using limit orders lets traders have better control over the prices they trade. Using a buy limit order guarantees that a trader or investor will pay a specified price or less. However, it is not guaranteed that the order will actually be filled.