This is a short guide on how to create a Buy Limit Order on Degiro – a popular Online Stock Broker. When you create a Buy Limit Order, you are telling your stock broker that you only want to purchase a stock if it is less than or equal to the price that you have set. i.e. You’re only interested in the security if it is at or below the specified price in your Buy Limit Order.
In this case, I am using Apple In (AAPL) as an example:
The popup above appears whenever you click “Buy” on a certain stock. If you look closely, you will see:
- I have set the Type to “Limit Order”.
- I have entered 154.50 into the “Limit ($)” field.
- I have entered 50 into the “Number” field.
- I have selected GTC as the “Order Duration”. GTC means “Good Until Cancelled”.
- The current / last price of this particular stock is $155.30, which is $0.80 more expensive than the price we entered into the “Limit ($)” field.
In plain English: This Buy Limit Order is telling Degiro that I only want to buy 50 shares of AAPL if the price falls to $154.50 or below. If the price stays the same or rises, Degiro will not purchase the shares.
What if the price of the stock doesn’t fall to the value I set in my Buy Limit Order?
If the price doesn’t fall to 154.50, then Degiro will not purchase the shares in question.
What if the price of the stock falls below the value set in my Buy Limit Order?
Using the example above: If AAPL stock were to fall / “gap down” from $155.30 to $153.90, then Degiro will purchase the shares at the best available asking price below (or at) $154.50.
If the price doesn’t drop, how long will my Buy Limit Order stay open?
This depends on what you selected in the “Order Duration” dropdown. If you selected “GTC”, then the order will remain opened until you login to Degiro and manually cancel it (or something else happens to the stock in question). GTC stands for “Good Until Cancelled”. If you select “Day Order”, then your Buy Limit Order will expire as soon as the stock market closes.
Here’s an example of what the Buy Limit Order would look like if I were to use the Degrio app:
As you can see, the layout is different, but my Limit ($) price is the same and I’ve selected the GTC option at the bottom of the app.
Hopefully, this article helped! Happy trading!