A Limit Order helps you purchase or sell a stock at a price that you have in mind and it comes in two forms: buy Limit Order and sell Limit Order. A buy Limit Order allows you to purchase shares at a preferred price (that is lower than the current market’s offering) and can only be executed at the limit price you have set in place, or lower. A sell Limit Order, on the other hand, allows you to sell your shares at a preferred price (that is higher than the market’s current offering) and will only be executed at the limit price you have set, or higher. Even though Limit Orders do not guarantee execution, it protects you from paying beyond your pre-determined price for a stock.