Market vs Limit Orders

A market order buys or sells immediately at the best available price, prioritizing speed. A limit order sets the maximum you will pay or the minimum you will accept, prioritizing price control but with no guarantee it fills. Choosing between them is one of the most basic decisions when placing a trade.

Use market orders for highly liquid stocks when getting filled quickly matters more than a few cents. Use limit orders for volatile or thinly traded stocks, or when you want to avoid paying more than a set price. Limit orders protect you from sudden price spikes but may go unfilled if the market never reaches your price.

If a stock trades at 50 dollars, a market order fills right away near that price. A limit order to buy at 49 dollars only fills if the price drops to 49 or below, letting you control cost but risking that it never triggers.