An order that is submitted by a bidder (individual or institutional investor) to an underwriter, in an initial public offering (IPO), at a specific price within a prespecified price range. The underwriter compiles orders from investors in various amounts expressed at various limits. Bidders specify a maximum price at which each is willing to pay for a given number of shares. Therefore, such bids convey more information to the underwriter than strike orders. Limit orders are compiled as staggered orders or stepped bids.

This type of order is also referred to as a price-limited order.