A limit order sets the maximum or minimum share price at which you are willing to buy or sell shares - the order will only be executed at the specified price or better. A limit order allows you to guarantee that, if a trade is possible, you will receive a specified price (limit price) or better. However, if there is too much movement in the market, or the stock never reaches or surpasses the limit price, a trade will not be executed. Thus, a limit order guarantees a price or better, but not an execution.
If you do not want to pay more than $90 share price for Apple stock, you can set a limit order with those details. Your order will then join the other bids for the stock at a price of $90.
There are two types of limit orders:
Buy Limit Orders - Orders will execute only if the market reaches the specified price for a long enough period of time to execute the order. A buy limit order is placed at or below the limit price and will not be executed for a worse (higher) price than the limit price. If you set your buy limit price above the current market price, it may be executed immediately.
Sell Limit Orders - Orders will execute only if the market reaches the specified price for a long enough period of time to execute the order. A sell limit order is placed at or above the limit price and will not be executed for a worse price than the limit level. If you set your sell limit price below the current market price, it may be executed immediately.
*Note: With limit orders, it is possible that the order may never be executed because the limit price is not reached.
** Note: on Stake, you place a buy limit order based on the number of shares you want to buy - this differs from a market buy order which is based on the dollar amount you want to invest. All sell orders on Stake are based on number of shares you own.
***Note: A Limit Order placed on Stake is considered a Day Order - a day order will expire at the end of the trading day, if it is not executed before market close. Orders placed between 4:00-4:15 PM US Eastern Time will be rejected. Orders placed after 4:15 PM US Eastern Time will remain pending until executed, cancelled or expired (market close the following trading day). The markets are open 9:30am - 4pm Eastern Standard Time (NY, USA) which corresponds to 11:30pm - 6am Australian Eastern Standard Time.