What Is a Limit Order versus a Market Order? ⎊ Path

What Is a Limit Order versus a Market Order?

A limit order is an order to buy or sell an asset at a specific price or better. It will only execute if the market price reaches the limit price.

This gives a trader control over the execution price but does not guarantee the order will be filled. A market order is an instruction to buy or sell immediately at the best available current price.

It guarantees execution but not the price, making it susceptible to slippage in volatile or illiquid markets.

What Is the Difference between “Market Order” and “Limit Order” in the Context of Derivative Exchanges?

How Do Batch Auctions Differ from Continuous Limit Order Books in Trade Execution?

What Is the Difference between a Custodial and Non-Custodial Derivatives Exchange?

Are Guarantee Fund Contributions Returned to a Member If They Leave the Clearing House?

Can a Limit Order Ever Execute outside the Current Bid-Ask Spread?

Can You Trade Derivatives Based on the VIX Itself?

What Is the Difference between Market Orders and Limit Orders in the Context of the Spread?

What Is the Consequence of Failing to Meet a Variation Margin Call?

Glossar

Limit Order

Order ⎊ A limit order represents a conditional instruction to execute a trade at a specified price or better.

Market Order

Execution ⎊ A market order represents an instruction to execute a trade immediately at the best available price within the prevailing order book, irrespective of a specific price point.