Limit orders are one of four different order types available using Wealthsimple's self-directed investing accounts. Other order types include:
How do limit orders work?
A limit order allows you to buy or sell a security or cryptocurrency at a specific limit price or better. When you set up a limit order, you pick the limit price at which you wish the order to fill. The order then gets executed when there is enough trading volume at your price level or better to match with another order in the market.
What to expect
- Limit orders are only executed when the market is open.
- To place a limit order when buying a security, you will need to change your order type to a limit order.
- Limit orders will not execute if the stock price does not meet your limit price.
- By default, limit orders for stocks and ETFs expire at market close if they cannot fill within the day. See below on how to extend this expiry time to 90 days.
- By default, limit orders for cryptocurrencies expire if they cannot fill within 24 hours. If you follow these instructions, you can extend this expiry time to 30 days.
- Limit orders are 'any-part orders'. If we can only fill part of your order, we'll try to do it.
- Limit orders are automatically cancelled if your limit price is a lot higher or lower than the market price.
Understanding limit buys
Limit buys let you set the highest price you’re willing to pay for a security. Your order will only execute if the ask price reaches or goes below that price.
Example
Say you want to purchase stock XYZ at $100 but the stock is currently trading for $105
- Instead of watching the market and hoping that the stock drops below $100, you place a limit buy on stock XYZ for $100
- This means that you will not purchase the stock unless the price reaches or drops below $100
- Throughout the day, the price of the stock fluctuates above $100, until 2:30 pm when it drops to $99
- Your limit order will then get filled at the best available price below $100
Understanding limit sells
A limit sell allows you to set the lowest price at which you’re willing to sell a security. Your order will only execute if the bid price reaches or goes above that price.
Example
Say you want to sell. stock XYZ at $150 but the stock is currently trading at $145
- Instead of watching the market and hoping that the stock rises above $150, you place a limit sell on stock XYZ for $150
- This means that you will not sell the stock unless the price reaches or goes above $150, and there is enough volume to fill your order
- Throughout the day, the price of the stock fluctuates below $150, until 2:30 pm when it goes up to $152
- Your limit sell will then get filled at the best available price above $150
Frequently asked questions
How do I extend the expiry of my limit order?
To extend your limit order expiry to only expire after 90 days (or 30 days if on a cryptocurrency) and not at the end of the trading day, follow the steps below when placing your order —
- Log in to your Wealthsimple account.
- In the Search name or symbol field, search and select security you wish to buy.
- On the right side, select Limit buy from the Order Type menu.
- Select Place a limit order.
- On the new page, check that Limit order is still selected as the Order Type.
- After entering your limit price and the number of shares you wish to buy, select Buy and then Continue.
- At the bottom of your order summary page, check the box that says Keep my order open until filled or I cancel it.
- Your order will now be open for a maximum of 90 days before expiring.
- Log in to your Wealthsimple mobile app.
- Select the security you wish to buy or sell, and begin placing your order.
- After entering your limit price and number of shares you wish to buy or sell, select Continue.
- Before confirming your purchase, toggle on the option to keep your order open until filled or cancelled.
- Your order will now be open for a maximum of 90 days before expiring.
What does it mean to partially fill an order?
If part of your order can be filled (i.e. if you are trying to buy three shares but there are only two available at your limit price or better), this part will still go through.
If your order partially fills, the remaining part of your order will stay open until the end of that trading day, and cancel itself automatically if unfilled.
How do I modify or cancel a pending limit order (Equities)?
Follow these instructions to modify or cancel a pending limit order for equities.
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