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A market order is "I want to buy 10 units, no matter what the market price is" and a limit order is "I want to buy 10 units at a price no more than $50" or what
by patmcc 7y ago
A market order is "I want to buy 10 units, no matter what the market price is" and a limit order is "I want to buy 10 units at a price no more than $50" or whatever.
- mlthoughts2018 7y agoFor retail investors in a situation like this, it probably doesn’t matter. You would create a buy limit order at a price somewhere high enough that it’s likely to execute no matter what the price is doing, so the effect is basically the same as a market order. The advice to generally use limit orders is good though. Rarely would a retail investor need a market order.
- dannyw 7y agoAll retail brokerages, and even many professional brokerages send market orders as limit orders anyway. No one wants 100% slippage.
- ineedasername 7y agoLimit orders certainly seem to make a lot more sense, less risk. Is there a use case for market orders that's Superior to limit orders?