A market order is an order to buy or sell a stock immediately at its current market price. And a limit order will execute when the price of the stock is within a limit that you set. So instead of sitting around waiting and watching a stock, you can let your trading platform do the work for you and, you know, go have a life.

Party on.

6 thoughts on “Limit Order Versus Market Trade”
  1. IMO I just go market. Unless the volumes are thinly traded. The risks are no execution and this can cost you thousands instead of a few pennies. Just buy the stock if it’s within your price tartget it’s not going to matter.

    Limit order risks
    Limit orders offer many advantages, but in exchange for having control over the price you’re paying or accepting, you’ll face some tradeoffs. Therefore, you should understand the factors that affect how a limit order will execute or whether it will execute at all.

    Risk of no execution – Limit orders allow you to seek a specific price or better, but they do not guarantee that an execution will occur because the price may never reach your limit price. Even if trading activity touches the limit order price for a short time, an execution still might not occur if other orders ahead of yours use all or part of the shares available at the current price. In addition, market orders are always executed prior to limit orders.

    1. Always additional risks. You could get stopped out of a good position with a minor swing in the day. I agree if volumes are light you may use a limit ordere. Preferred shares would be a good example.

  2. I tend to agree not much of a benefit unless you are day trading. But then you have all the time in teh world to sit and watch teh stock. Market order for the majprity of my buy and sells.

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