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.

Note

The following examples 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.

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

YOWL 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 YOWL 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 YOWL 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

YOWL 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 YOWL 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 YOWL 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. Share-based and dollar-based orders can default to market or limit orders depending on the time of day and order side.

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.

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

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.

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All Investing involves risk.

Brokerage services are offered through Robinhood Financial LLC, (“RHF”) a registered broker dealer (member SIPC), and clearing services through Robinhood Securities, LLC, (“RHS”) a registered broker dealer (member SIPC).

Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (“RHC”) (NMLS ID: 1702840).Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Please review a list of RHC's licenses for more information. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected.

The Robinhood spending account is offered through Robinhood Money, LLC (“RHY”) (NMLS ID: 1990968), a licensed money transmitter. Please review a list of our licenses for more information.

The Robinhood Cash Card is a prepaid card issued by Sutton Bank, Member FDIC, pursuant to a license from Mastercard® International Incorporated. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated.

Robinhood Gold Card is subject to credit approval and underwriting. Robinhood Gold Card is offered by Robinhood Credit, Inc., and is issued by Coastal Community Bank, pursuant to a license from Visa U.S.A. Inc. Robinhood Credit, Inc. (“RCT”), is a financial technology company, not a bank.

Robinhood Gold is a subscription-based membership program of premium services offered through Robinhood Gold, LLC (“RHG”).

RHF, RHY, RHC, RCT, RHG, and RHS are affiliated entities and wholly owned subsidiaries of Robinhood Markets, Inc. RHF, RHY, RHC, RCT, RHG, and RHS are not banks. Investing products offered by RHF are not FDIC insured and involve risk, including possible loss of principal.

RHY is not a member of FINRA, and products are not subject to SIPC protection, but funds held in the Robinhood spending account and Robinhood Cash Card account may be eligible for FDIC pass-through insurance (review the Robinhood Cash Card Agreement and the Robinhood Spending Account Agreement).

Options trading entails significant risk and is not appropriate for all customers. Customers must read and understand the Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount.

The risk of loss in trading futures can be substantial. Carefully consider if it’s appropriate for you in light of your financial circumstances. Please read the Futures Risk Disclosure Statement prior to trading futures products. Futures accounts are not protected by the Securities Investor Protection Corporation (SIPC) and are not Federal Deposit Insurance Corporation (FDIC) insured. Prior to trading virtual currency Futures products, please review the NFA Investor Advisory & CFTC Advisory providing more information on these potentially significant risks. Futures trading and options on futures trading are offered by Robinhood Derivatives, LLC (“RHD”), a registered futures commission merchant with the Commodity Futures Trading Commission (CFTC) and Member of National Futures Association (NFA) (NFA ID 0424278).

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