What Is the Difference between a Limit Order and a Market Order in Options Trading? ▴ Learn

What Is the Difference between a Limit Order and a Market Order in Options Trading?

A market order is an instruction to buy or sell an option immediately at the best available current price, prioritizing speed over price certainty. A limit order is an instruction to buy or sell at a specified price or better, prioritizing price certainty over immediate execution.

Market orders risk slippage, while limit orders risk non-execution.

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