Market Order vs Limit Order: What’s the Difference?

A market order and limit order are two different types of stock market trading orders that most brokers & online trading apps offer. When you attempt to trade stock, you may choose between these types of orders.

A market order allows you to buy or sell a stock at the current market price. Your order will be executed right away.

A limit order allows you to buy or sell a stock at a certain limit price. This type of order is useful for dip buying or maximizing the amount you sell a stock for.

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Tarik Pierce is the founder of and regularly contributes articles to this website. He studied Economics at Dartmouth College and invests in a mix of dividend stocks, high CAGR tech stocks & cryptocurrencies.

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