What is Price limit in Groww?

Price limit is a feature provided by Groww, an online investment platform, that allows users to place limits on the maximum or minimum price they are willing to pay for a particular stock or mutual fund. This feature helps investors to control their investment costs and mitigate the risks associated with market fluctuations. With price limits, investors can automate their trades and execute them at the desired price levels without constantly monitoring the market. This feature is handy for investors who want to buy or sell securities at a specific price.

How to place a limit order on a specific price limit in Groww?

Here is a step-by-step guide on how to place a limit order with a specific price limit in Groww:

• Open the Groww app on your smartphone or access the website on your computer.

• Log in to your account using login credentials.

• From the home screen, select the stock or mutual fund in which you want to place the order.

• Tap on the ‘Buy’ or ‘Sell’ button, depending on whether you want to buy or sell the stock.

• Choose the ‘Limit Order’ option from the available order types.

• Enter the desired quantity of shares you want to buy or sell.

• Enter the price limit at which you want to execute the order.

• Confirm the details of the order, including the order type, quantity, and price limit.

• Check the order details and click on the ‘Place Order' button.

Once you have placed the order, you can track the status of the order from the ‘Orders’ section of the app or website.

Advantages of limit order

Some advantages of the limit order are given below:

• A limit order allows investors to control the price at which they buy or sell a security.

• It can be especially useful in volatile markets, where prices can fluctuate rapidly.

• By setting a limit, investors can avoid paying more or receiving less than they want for security.

• Limit orders can be used to automate trades, saving time and reducing the need for constant monitoring.

• They give investors greater control and flexibility, helping them manage their investments better.

• Limit orders can also help investors to avoid emotional decisions and stick to their investment strategy.