Market Order vs. Limit Order: What’s the Difference?
Market Order vs. Limit Order: An Overview
When buying stocks, you have a few choices about how to place your order. You can order at the present asking price to lock in the exchange or set a price you’re willing to pay and see if it gets met. This is the difference between market and limit orders.
Market orders execute trades immediately at the present market price. You’ll get the stock right away, but the exact price might fluctuate slightly between when you place the order and when it executes.
Meanwhile, limit orders give you control over the exact price you’ll pay. You set the maximum price you’re willing to pay when buying (or minimum price when selling), and the trade only goes through if the market reaches your…
