💹Limit Order
Dragon (limit order) is an order to buy or sell a security at a specific price or better. It provides more control over the execution price compared to a market order. Here are the primary objectives of using a limit order:
Price Control:
Buy Limit Order: To purchase the security at or below a specified price, ensuring you do not pay more than your desired price.
Sell Limit Order: To sell the security at or above a specified price, ensuring you do not sell for less than your desired price.
Cost Management:
Helps manage the cost of transactions by setting price limits, thus potentially reducing trading costs compared to market orders.
Avoid Overpaying/Underselling:
Protects the investor from overpaying for a buy or underselling for a sell, especially in volatile markets where prices can fluctuate rapidly.
Strategic Entry and Exit:
Allows for strategic planning to enter or exit positions at favorable prices based on market analysis or technical indicators.
Minimize Slippage:
Reduces the risk of slippage, which occurs when the actual execution price differs from the expected price, common with market orders.
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