When you place an order, you choose how it should execute. The two basic choices are a market order and a limit order.
Market order
A market order is executed immediately at the best available price in the market.
- You get speed — the order fills right away (as long as there are buyers/sellers).
- You don't control the exact price — in a fast-moving or illiquid stock, the fill price can be a little different from what you last saw.
Use it when getting filled quickly matters more than the exact price.
Limit order
A limit order is executed only at the price you set, or better.
- For a buy limit order, it fills at your limit price or lower.
- For a sell limit order, it fills at your limit price or higher.
- You control the price, but there's no guarantee of execution — if the market never reaches your price, the order stays pending and may not fill.
Use it when the exact price matters more than an immediate fill.
Quick comparison
| Market order | Limit order | |
|---|---|---|
| Price | Best available at that moment | The price you set (or better) |
| Speed | Fills immediately | Fills only when your price is reached |
| Certainty of execution | High | Not guaranteed |
| You control | Speed | Price |