Market Order vs Limit Order

Understand two common order types and the trade-offs involved in execution.

A market order prioritises execution, while a limit order specifies a price condition. In fast-moving markets, the final execution price of a market order can differ from the price seen moments earlier.

Limit orders can provide price control but may not execute. Students should understand liquidity, bid-ask spread and partial fills before using either order type.

Order behaviour can vary by product and exchange rules, so learners should always review their broker’s current order documentation.