In trading, a limit order is a type of order made by an investor to a broker. A limit order is only valid if the trade can be performed at a price equal to or better than a limit price which the investor specifies.
This prevents brokers from purchasing securities at prices higher than those which investors are willing to pay, or from selling securities at prices lower than investors are willing to sell at.
Typically, limit orders are good-till-cancelled orders, meaning the order remains in place until the limit threshold is reached and the trade can be executed. However, limit orders may also be good-for-day orders or good-till-date orders.