A sell limit order is an instruction by which an investor orders a securities broker to sell a certain security if and when the market price of that security reaches or exceeds a pre-specified threshold (the limit price).
Example: You want to sell 5000 shares in a certain stock, but only if the per-share price increases to 5 francs or higher. After some time, the stock’s rate increases to 5 francs per share. The broker then sells as many shares as possible at prices which exceed your limit price.
Sell limit orders are primarily used to prevent assets from being sold by your broker at a price lower than the price which you want to get for them. Sell limit orders will not be filled unless the broker can sell the assets at the limit price or better.
See also: Buy limit order
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