A market order guarantees execution but not price, it fills at the best currently available price. A limit order guarantees the price (or better) but not execution, it only fills if the market reaches the limit. Market order = immediate at any price, limit order = at this price or not at all.
| Criterion | Limit order | Market order |
|---|---|---|
| Execution guaranteed? | No, only if price is reached | Yes (assuming liquidity) |
| Price guaranteed? | Yes, limit or better | No, slippage possible |
| Order-book role | Maker (adds liquidity) | Taker (removes liquidity) |
| Fees (typical) | Lower (maker rebate possible) | Higher (taker fee) |
| Risk in thin markets | Non-execution | Meaningful slippage |
| Usage in news/volatility | Suited for planned entries at levels | Suited when immediate exit/entry is mandatory |
When entry/exit price matters more than immediate fill, e.g. building a position at support or scaling into a retracement.
When immediate execution is priority, e.g. closing a position that moves against plan, or in liquid instruments with tight spreads.
Educational content, not investment or tax advice. Neutrally contrasted, not a recommendation of either approach. Trading leveraged products carries risk of total loss.