Limit price

When you want to buy something, sometimes you don't want to pay more than a certain amount of money. That certain amount of money is called a limit price. It's like having a toy you want to buy and you tell your mom you only want to spend $5 on it. If the toy costs more than $5, you won't buy it.

In the same way, when you buy stocks or other things on the stock market, you can set a limit price. It's like telling the stock market that you only want to buy a share of a stock if it costs less than a certain amount of money. If the stock price goes above your limit price, then you won't buy that stock.

So, a limit price is a way to set a maximum price you are willing to pay for something, and it helps you control your spending.