RealMoney Radio Mailbag: Taking It to the Limit

A listener learns Cramer's definition of a limit order.

Author:: TheStreet.com Staff
Publish date:: Sep 28, 2006 4:41 PM EDT

Editor's note: The following are questions received from listeners of "RealMoney Radio." To send Cramer a question about topics from his radio show, click here. Listen to Cramer's latest radio show by clicking here.

What is a limit order?-- Cho

Jim Cramer

: A limit order is an order to buy a stock where you specify the maximum price you are willing to pay for it. For example, if you place an order to buy

Google

(GOOG) - Get Report

with a limit of $404, you will not pay above that amount for the stock. I recommend that investors make a practice of using limit orders, particularly when buying at the open and/or when buying small caps.

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At the time of publication, Cramer had no position on any stocks mentioned.

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