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L
Limit Order

In the context of stock options, a limit order is an order to exercise and sell when the stock associated with an exercise reaches a specific price on a specific day. The order is canceled if the price is not met or exceeded by the end of that trading day, unless it is on a good-till-canceled basis. A sale may or may not be for the same share quantity as the exercise. Sometimes optionholders sell only enough to exercise their options. This is called a same-day sale or a sell-to-cover. Either can be done at a limit price. For details on the different types of sell orders, which apply to any stock in your accounts, see a detailed FAQ elsewhere on this website.

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