1. Limit Order
What Is a Limit Order?
A limit order is an instruction to buy or sell a security at a specified price or better. It provides greater control over the execution price but does not guarantee that the order will be filled.
A buy limit order can be filled only at the specified limit price or lower.
A sell limit order can be filled only at the specified limit price or higher.
For example, if you place a buy limit order at $50, the order can be filled only at $50 or below. If the market price remains above $50, the order will not be filled.
Key Considerations
A limit order guarantees the price condition but does not guarantee execution. The order may remain unfilled or be only partially filled if:
The market does not reach the specified limit price.
There is insufficient liquidity at the limit price.
Other orders have priority at the same price.
Limit orders may be more suitable when price control is more important than immediate execution.
Supported Trading Hours
U.S. Stocks
Pre-market trading: 04:00–09:30 ET
Continuous trading: 09:30–16:00 ET
Post-market trading: 16:00–20:00 ET
U.S. Options
Continuous trading: 09:30–16:00 ET
2. Market Order
What Is a Market Order?
A market order is an instruction to buy or sell a security at the best available market price. It prioritizes immediate execution over price control.
A market buy order generally executes at the lowest available selling price.
A market sell order generally executes at the highest available buying price.
A large order may be filled at multiple prices.
Key Considerations
A market order does not guarantee a specific execution price. The actual fill price may differ from the price displayed when the order is submitted, particularly when:
The market is volatile.
The security has low liquidity.
The bid-ask spread is wide.
A large quantity is being traded.
Market orders are generally more likely to be executed, but the execution price is uncertain.
Supported Trading Hours
Market orders are supported during continuous trading hours:
U.S. stocks: 09:30–16:00 ET