When it comes to selling, what are the benefits of placing limit orders?

Question

When it comes to selling, what are the benefits of placing limit orders?

Answer 1

A sell limit order means that you set a price that you will sell at and your broker can't sell for less than that amount. It would protect you from giving a sell order and having the stock drop much lower than expected. Many people would elect to keep a stock that has suddenly dropped in value until it rebounded.

Answer 2

Limit Orders

http://www.sec.gov/answers/limit.htm

Other kind of buy/ sell orders

http://en.wikipedia.org/wiki/Order_(exch...

Benefit.

You say, "I want X price or better but not less than X"

Risk:

In a fast moving market, the stock (or other security) can fall below your limit and not get executed.

When using options, best to use limit orders.

When buying or selling stocks under 1001 shares, market orders prob ok, as long as the stock trades say 3mm shares a day or more.

Thinly traded stocks and ETFs, limit order always.

Would you like fries with that order ;-P