Skip to main content
Learn

What Is the Difference between Market Order and Limit Order in Low-Liquidity Markets?

Market orders risk price slippage due to wide spreads; limit orders protect against slippage but risk non-execution.
Greeks.Live22.11.25

What Is the Difference between Market Order and Limit Order in Low-Liquidity Markets?

A market order is executed immediately at the best available price, which can lead to significant price slippage in a low-liquidity market due to wide spreads. A limit order is executed only at a specified price or better, protecting the trader from slippage but risking non-execution.

Traders in low-liquidity markets generally prefer limit orders.

What Is the Practical Implication of a “Wide Mid-Price” in an Illiquid Options Market?
How Does Low Liquidity in Complex Derivatives Impact the Effectiveness of a Central Limit Order Book?
How Does the ‘Order Book Depth’ Visualize the Liquidity Difference That Causes the Spread Disparity between the Two Asset Classes?
What Is the Primary Difference between a Limit Order and a Market Order in Controlling Slippage?

About

Contact

Editorial Policy

Terms of Service

Privacy Policy

Cookie Policy

© 2025 Greeks.Live

All Rights Reserved

Greeks.Live RFQ

Build by Noo on Engine

Source: The content on this website is produced by Greeks.live's proprietary analysis systems, which utilize advanced Large Language Models (LLMs). This information might not be subject to a full human review before publication and may contain errors.
Responsibility: You should not make any financial decisions based solely on the content presented here. We strongly urge you to conduct your own rigorous due diligence and to consult a qualified, independent financial advisor.
Purpose: All information is intended for informational purposes only. It should not be construed as financial, investment, trading, or any other form of professional advice. News and data are not trading signals.
Risk: The cryptocurrency, derivatives, and options markets are highly volatile and carry significant risk. By using this site, you acknowledge these risks and agree that Greeks.live and its affiliates are not responsible for any financial losses you may incur.