A market order prioritizes speed
A market order asks the exchange to execute immediately at the best price currently available. It can be useful when entering or exiting quickly matters more than the exact price. In a fast or less liquid market, however, the final execution price can differ from the price you saw before sending the order. This difference is known as slippage.
A limit order prioritizes price control
A limit order names the highest buy price or lowest sell price you accept. It only fills when the market reaches that level, so execution is not guaranteed. Use a limit order when your plan depends on a defined entry or exit zone. Before placing either order, check the amount, price, fees and how the order fits your risk limit.
- Choose market orders when timing is essential and you accept possible slippage.
- Choose limit orders when price matters more than immediate execution.
- Review open orders so an old plan does not execute unexpectedly later.