1. Market Order
A market order means that when placing an order, the user does not set a price. The system executes the trade immediately at the best available market price.
✅ Fast execution; the trade is usually completed instantly.
❌ The execution price cannot be controlled and slippage may occur (the final price may differ slightly from the expected price).
Suitable for:
Situations where you need to complete a trade quickly, such as buying or selling immediately without worrying about small price fluctuations.
2. Limit Order
A limit order means that the user sets a specific buy or sell price when placing an order. The order will only be executed when the market price reaches or is better than the set price.
✅ Allows precise control over the buy or sell price.
❌ Execution is not guaranteed and may require waiting until market conditions are met.
Suitable for:
Situations where you want to trade at a specific price, especially in volatile markets where you prefer not to accept price fluctuations.
Summary:
Market Orders are ideal for fast execution and efficiency.
Limit Orders are ideal for price control and strategic trading.