A limit order is an order placed with a brokerage to execute a buy or sell transaction at a set number of shares and at a specified limit price or better. It is a take-profit order placed with a bank or brokerage to buy or sell a set amount of a financial instrument at a specified price or better. This is because a limit order is not a market order; it may not be executed if the price set by the investor cannot be met during the period of time in which the order is left open. A limit order also allows an investor to limit the length of time an order can be outstanding before being cancelled.