Assalam o alaykoum,
Is it permissible to use limit order instead of market order to buy and sell stocks at a predefined price?
Jazak Allah khair
Assalaamu alaykum,
Market orders are instructions meant to execute a trade as quickly as possible at the current market price.
Limit orders are instructions which set the maximum or minimum price at which you are willing to complete the transaction, whether it be a buy or sell.
Market orders offer a greater likelihood that an order will go through, but there are no guarantees, as orders are subject to availability.
Both are permissible as they are instructions in your position as a principal to your broker.
Allah knows best
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