Better price limit order’ allows traders to buy or sell a stock at the price they have set or at a price which is better than the set price. Suppose, a trader has placed a buy limit order for Rs. 52 per stock and s/he would like to buy the stock from the exchange only at Rs. 52 or a lower price. Under no circumstances would the trader want to pay more than Rs. 52, or a price better (higher) than Rs. 52. Similarly, a sell limit order placed at Rs. 55 means that the trader would want to sell the stock only at Rs. 55 or a price higher than Rs. 55. The advantage of placing a better price limit order is that traders can place buy/sell orders at the particular desired price. Though, there is a chance that the order may not get filled, either completely or even partially.
