Limit orders set a price; market orders execute immediately
Order (exchange)
Limit orders set a price; market orders execute immediately
Limit orders are used to specify the maximum price you are willing to pay for a stock or the minimum price you are willing to accept for a stock. Market orders, on the other hand, are executed immediately at the best available price.
Example
If you want to buy shares of Apple at $150 or less, you would place a limit order. If you want to buy shares of Amazon right now, regardless of the price, you would place a market order.
Remember this
Understanding the difference between limit and market orders is crucial for effective trading strategies.
Text adapted from Wikipedia, licensed under CC BY-SA 4.0.
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Bid-ask spread measures transaction costs and liquidity
Educational content, not financial advice.
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