What is the difference between a market order and a limit order? How do you place a limit order?
Answers
435 points
larryat36 answered 11 months ago …
A market order will have you buying your instrument at it's current ask price A. limit order lets you decide the price that you are willing to pay. I very very seldom will put in a market order to buy, but will order at a price lower than the ask. To do this just tell your broker that you want to place an order for XYZ at a limit price of $???, When the price gets to that level you will then be placed at at an order to buy that instrument at that price or better.
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114 points
kr8ve answered 11 months ago …
Market order: Placing a trade, which will be excurted at the current price at the time the order hits the trading floor. You will not know the purchase or sale price until you get your confirmation statement/response.
Limit Order: You state a specific price (or better) you want to buy or sell. If the market price gets to your requested value, the order becomes a market order and the transaction is executed at your requested price (or better). If you requested a DAY ORDER then, if your price is hit, a trade will occur that day. If the price is not hit, then the order expires. If you made a GTC order, then, the order stays active until YOU cancel the order. Once the limit price (or better) is hit, your order is excuted. Again, your confirmation notice will give you the exact price of the purchase or sale.
180 points
kobla answered 11 months ago …
Market Order
An order price type placed on the execution of an order. A market order uses the best price in the current market to buy or sell a security at the time your order executes.
Limit
An order price type placed on the execution of an order. When you place a limit order to buy, the stock is eligible to be purchased at or below your limit price, but never above it. When you place a limit order to sell, the stock is eligible to be sold at or above your limit price, but never below it.
180 points
kobla answered 11 months ago …
AND,,,,,,,,I strongly recommend you trade on paper to track you’re your profit/loss before you make any trades with real money. Here are some symbols you may want to start practicing with SKF XLF,, SMN UYM,, SRS IYR,, SPY SDS. Be careful half the symbols are double shorts
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