Limit order | Robinhood

Limit order

A limit order can only be executed at your specific limit price or better. Investors often use limit orders to have more control over execution prices.

Keep in mind, limit orders aren't guaranteed to execute. There has to be a buyer and seller on both sides of the trade. If there aren't enough shares in the market at your limit price, it may take multiple trades to fill the entire order, or the order may not be filled at all.

Depending on the final price your order is filled at, the final dollar amount of your order may change from what is estimated in the app.

Buy limit order

With a buy limit order, a stock is purchased at your limit price or lower. Your limit price should be the maximum price you want to pay per share.

Example

MEOW is currently trading at $10 per share, but you only want to pay $8 per share at most. You would set your limit price to $8.

  • If MEOW drops from $10 to $8 or lower, and there are shares available, your order should fill (in full or partially) at $8 or lower.
  • If MEOW doesn’t drop to $8, your order won’t execute.
Sell limit order

With a sell limit order, a stock is sold at your limit price or higher. Your limit price should be the minimum price you want to receive per share.

Example

MEOW is currently trading at $10 per share, but you want to receive at least $12 per share. You would set your limit price to $12.

  • If MEOW rises from $10 to $12 or higher, and there are buyers available, your order should be filled (partially or fully) at your limit price or higher.
  • If MEOW doesn’t rise to $12, your order won’t execute, and you’ll keep your shares.

Default order schedule

Robinhood defaults to share-based or dollar-based orders. The following shows the default order behavior for trading during regular market hours versus extended-trading hours with Robinhood. Orders submitted during the overnight trading hours, or when the market is closed, are queued for market open and therefore follow the Market hours order schedule:

Keep in mind

Our app will show you the equivalent Greenwich Mean Time (GMT) or British Summer Time (BST) that matches up with the US Eastern times (ET) for trading hours. For example, 9:30 AM ET is 5 hours behind GMT and 4 hours behind BST, so will either be 2:30 PM GMT or 1:30 PM BST.

Order typeMarket hours (9:30 AM–4 PM ET) and Overnight hours (8 PM-7 AM ET)Extended hours (7–9:30 AM and 4-8 PM ET)
Share-based buy ordersLimitLimit
Share-based sell ordersMarketLimit
Dollar-based buy ordersMarketLimit
Dollar-based sell ordersMarketLimit

For buy orders, the limit price is set at 5% above the last trade price on a Nasdaq exchange (the Nasdaq Stock Market, NASDAQ OMX BX, or NASDAQ OMX PHLX). For sell orders, the limit price is set at 5% below the last trade price on a Nasdaq exchange.

These limit orders, where we preset the limit price, are designed to execute at the same price and speed as market orders. Unlike market orders, they have the added benefit of price protection in fast moving or less liquid markets (which is especially helpful during extended-hours trading) because they won’t execute at a price that is worse than the limit price. Finally, our venues only support limit orders during extended hours, so these orders enable you to trade during extended hours.

Note

We generally cancel fractional orders (share-based orders that include a fractional share and dollar-based orders) if they’re either limit orders with preset limit prices but are still unmarketable, or unexecuted after 5 minutes of being eligible for execution.

Disclosures

The examples included in this article are for illustrative purposes only. Understanding order types can help you manage risk and execution speed. However, you can never eliminate market and investment risks entirely. It’s best to choose an order type based on your investment goals and objectives.

All investments involve risks, including the loss of principal. Investors should consider their investment objectives and risks carefully before investing. Trading during extended and overnight hours comes with additional risks such as lower liquidity and higher volatility. You can learn more in the Extended-Hours Trading Disclosure.

Fractional shares are not liquid outside of Robinhood and not transferable. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section in our Customer Agreement.

Not all securities are eligible for the entry of fractional orders during Robinhood’s extended-hours trading. If a security isn’t eligible, the order will be queued for the opening of market hours.

You can learn more about eligible securities and the risks of extended-hours trading in Extended-hours trading and for overnight hours in Robinhood 24 Hour Market.

Robinhood U.K. Ltd (Robinhood UK) is a company registered in England and Wales (09908051) and is authorised and regulated by the Financial Conduct Authority (FRN: 823590). Robinhood UK onboards UK customers and has the lead customer relationship with UK customers in relation to their use of the Robinhood UK app and website. Robinhood UK introduces UK customers to Robinhood Securities, LLC for order routing, execution, clearing, settlement, arranging custody services and margin lending to eligible UK customers with margin accounts. Robinhood Securities, LLC is regulated in the U.S. by the SEC and FINRA. Robinhood UK and Robinhood Securities, LLC are subsidiaries of Robinhood Markets, Inc.

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All investing involves risk and a loss of principal is possible.

Robinhood U.K. Ltd (Robinhood UK) is authorised and regulated by the Financial Conduct Authority (FRN: 823590). Robinhood UK onboards UK customers and has the lead customer relationship with UK customers in relation to their use of the Robinhood UK app and website. Robinhood UK introduces UK customers to Robinhood Securities, LLC for order routing, execution, clearing, settlement, arranging custody services and margin lending to eligible UK customers with margin accounts. Robinhood Securities, LLC is regulated in the U.S. by the SEC and FINRA. Robinhood UK and Robinhood Securities, LLC are subsidiaries of Robinhood Markets, Inc.

Robinhood U.K. Ltd is a private limited company registered in England and Wales (09908051).

Robinhood does not provide investment advice. Individual investors should make their own decisions.

Commission-free trading of stocks refers to $0 commissions for Robinhood self-directed individual brokerage accounts that trade U.S. listed securities and ADRs. Keep in mind, other costs such as regulatory fees may apply to your brokerage account. Please see Robinhood UK’s Fee Schedule to learn more.

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All investing involves risk and a loss of principal is possible.

Robinhood U.K. Ltd (Robinhood UK) is authorised and regulated by the Financial Conduct Authority (FRN: 823590). Robinhood UK onboards UK customers and has the lead customer relationship with UK customers in relation to their use of the Robinhood UK app and website. Robinhood UK introduces UK customers to Robinhood Securities, LLC for order routing, execution, clearing, settlement, arranging custody services and margin lending to eligible UK customers with margin accounts. Robinhood Securities, LLC is regulated in the U.S. by the SEC and FINRA. Robinhood UK and Robinhood Securities, LLC are subsidiaries of Robinhood Markets, Inc.

Robinhood U.K. Ltd is a private limited company registered in England and Wales (09908051).

Robinhood does not provide investment advice. Individual investors should make their own decisions.

Commission-free trading of stocks refers to $0 commissions for Robinhood self-directed individual brokerage accounts that trade U.S. listed securities and ADRs. Keep in mind, other costs such as regulatory fees may apply to your brokerage account. Please see Robinhood UK’s Fee Schedule to learn more.

UK Privacy policy

© 2024 Robinhood. All rights reserved.