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.