This article explains public financial information. It does not recommend buying, selling or holding any investment.
Market orders prioritise execution
A market order instructs a broker to trade promptly at available prices. It usually executes in liquid markets but does not guarantee the displayed price.
Fast markets and thin liquidity can create slippage.
Limit orders prioritise price
A buy limit executes only at the limit or lower; a sell limit only at the limit or higher.
It may remain unfilled or fill partly.
The bid-ask spread is an immediate cost
The bid is the highest current buying price and the ask the lowest selling price.
Wider spreads and low market depth increase uncertainty.
Conditions change order behaviour
Day and good-till-cancelled affect duration. Stop orders become market orders after triggering.
Broker rules vary, especially for fractional shares and extended hours.
Verify before submission
Confirm symbol, side, quantity, type, limit, duration and session.
Review confirmations and cancellation status.
Frequently asked questions
Does a market order guarantee price?
No.
Can a limit order fail?
Yes.
What is slippage?
The difference between expected and actual execution price.
Is the last price guaranteed?
No.
Official sources
Definitions and methodology were checked against these primary resources. Consult the current documents for complete details.
Investor.gov — Types of Orders ↗Investor.gov — Limit Orders ↗
