Guides · Getting started
Market order or limit order: what's the difference?
In short: A market order buys immediately at the available price. A limit order only buys if the price is equal to or better than the one you set. For beginners, limit orders avoid bad surprises.
Market order
Fast, but the exact price is unknown in advance. On a heavily traded large stock the difference is tiny; on a small stock or at the open it can be large.
Limit order
You set a maximum price to buy (or minimum to sell). If the price never reaches it, nothing happens. It is the safest for beginners.
Stop orders
A stop order triggers when the price crosses a level, often to limit a loss (stop-loss). In a sudden crash it can execute well below that level.