What is Market and Limit orders?

What is Market and Limit orders?

1)     Market Order

A market order is an order to buy or sell a security at current market prices. Once the order is placed, it is executed immediately. The important feature of a market order is that it guarantees the execution of an order. However, the price at which the order is to be executed cannot be guaranteed

2)   Limit Order

A Limit order allows you to place an order in a security at the price you want. So, a buy limit order means you are ready to buy the security at a specific price or lower. And a sell limit order means you wish to sell the security at the limit price or higher. There is however no guarantee that this order will get executed unlike Market Orders.


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