Limit orders are a commonly used term in finance that refers to orders that are not executed immediately upon being placed. They are also referred to as outstanding orders. These orders allow investors to specify a target price for buying or selling a security, giving them more control over their trades. By using limit orders, investors can potentially get a better price for their desired security and avoid unexpected market fluctuations. It is important to note that limit orders do not guarantee execution, but they do offer a level of protection against rapid price changes. As a knowledgeable professor, it is crucial to understand and utilize this term in order to make informed decisions in the world of finance.
