How is the limit order set?

<p id="isPasted">A limit order is set by specifying a maximum or minimum price at which you are willing to buy or sell a security. The order will only be executed if the market price reaches your specified limit price or better.&nbsp;</p><p><strong>Setting a Limit Order</strong></p><p>The process for setting a limit order typically involves the following steps through an online brokerage platform or a financial advisor:&nbsp;</p><ul><li>Choose the security and action: Select the stock, ETF, or other security you wish to trade and whether you want to buy or sell it.</li><li>Select "Limit Order" type: Instead of a market order (which executes immediately at the current market price), choose the "Limit" option from the order type dropdown menu.</li><li>Specify the quantity: Enter the number of shares or units you wish to trade.</li><li>Set the limit price:</li><li>For a buy order: Enter the maximum price you are willing to pay per share. This price should be at or below the current market price if you want it to have a chance of executing in the near term.</li><li>For a sell order: Enter the minimum price you are willing to accept per share. This price should be at or above the current market price.</li><li>Choose the order duration: Decide how long the order should remain active. Common options include "Day Order" (expires at the end of the trading day) or "Good 'Til Canceled" (GTC), which stays open until filled or you cancel it.</li><li>Review and place the order: Verify all the details (security, buy/sell, quantity, limit price, duration) before confirming and placing the order.&nbsp;</li></ul>