Legal Definitions - no-limit order

Definition: A type of order in which a buyer or seller does not set a limit on the price they are willing to pay or receive for a security.

Example: An investor wants to buy 100 shares of XYZ company, but they do not want to set a limit on the price they are willing to pay. They place a no-limit order, which means they are willing to pay any price to acquire the shares.

This example illustrates how a no-limit order allows the buyer or seller to be flexible with the price they are willing to pay or receive for a security. It can be risky because the price could end up being much higher or lower than expected, but it can also lead to a better deal if the market price is favorable.