What Is the Difference between a Limit Order and a Market Order in an Arbitrage Context?

A market order executes immediately at the best available current price, prioritizing speed and certainty of execution but risking high slippage. A limit order specifies a maximum or minimum price, guaranteeing the price but not the execution.

Arbitrageurs often use market orders for speed in fleeting opportunities, accepting slippage, or a series of aggressive limit orders to minimize price impact while maintaining execution priority.