What is a Limit Order on US Stocks?

This order allows you to execute a purchase or sale at a specific price or better. You must set a limit price to determine the maximum amount you are willing to pay for a stock. However, the order can only be executed during trading hours, and the execution of the order is not guaranteed because your order will only be executed if the last execution price in the market reaches the limit price you set. You can choose when the order expires (until the market closes or until it is canceled).

Example:

You want to buy a stock, but only if the price drops to $100.00 or lower. So you place a Limit Order with a limit price of $100.00. This order will not be executed if the price remains above $100.00. The order will only be active and filled when the market price touches or falls below $100.00.