Limit orders: The limit sell
The limit sell
A limit sell order of the trader is executed when the sell price (bid) reaches the limit or exceeds or already lies above the limit price.
A trader has a stock currently listed at 100 euros in his or her brokerage account. He/she wants to sell this stock as soon as the price rises to 105 euros. The trader thus issues a limit sell order with an execution price of 105 euros. The order is only executed when the price of the stock rises to 105 euros or higher. As long as the stock is listed below 105 euros, the order will not be executed.