If the “Last Traded Price” of a stock is 300, and I place a “Limit Order” at 290.
Will my order be placed, if the stock falls below, 290 (eg. 285), but never 290?
Meaning that there is a seller who is willing to sell at 285?
If this is the case, Will my order be placed at 285 or 290?
If the stock drops to 285 and a seller is ready to sell at that price, your order will fill at 285. A limit order buys at the best price which is 290 or lower.
However, if you place a buy limit order above the CMP (300) or a sell limit order below the CMP, it will act like a market order and execute immediately at the best available price.