The choice between these two types depends on whether you value a or a guaranteed execution .
: If there isn't enough liquidity at your price, only a portion of your order may be filled (e.g., you want 100 shares but only 50 are available at your price). Comparison: Limit Order vs. Market Order what is a limit order when buying stocks
When you place a limit order to buy, you set a "price ceiling"—the maximum amount you are willing to pay per share. The trade will only trigger if the stock's market price falls to your limit price or lower. The choice between these two types depends on
: You are guaranteed to pay your specified price or less (for a buy) or receive your specified price or more (for a sell). Market Order When you place a limit order
: If a stock is currently trading at $17 but you only want to pay $14.50, you place a buy limit order at $14.50. The order remains pending until the price hits $14.50 or less.
: Limit orders are often the only order type allowed during pre-market or after-hours sessions.
