What is the primary purpose of a sell limit order?

A sell limit order is designed to allow a trader to set a specific minimum price at which they are willing to sell their securities. This means that the order will only be executed if the market price reaches or exceeds this specified limit. The primary purpose of such an order is to ensure that an investor does not sell their asset for less than a predetermined price, effectively allowing them to control the selling price.

In contrast, a market order, which is not the correct answer, seeks to complete a transaction as quickly as possible at the current market price without any price considerations. Other choices refer to concepts like loss prevention with sell stop orders or securing profits, but these are not characteristic of a sell limit order specifically, which focuses solely on establishing a selling price threshold.