Market order vs limit order
The two core order types explained: market orders fill now at the best price, limit orders set your price.
When you trade on the spot market, the two basic order types are market and limit.
Market order
Fills immediately at the best price available right now. Simple and fast, but the final price can move slightly while it fills, especially in a thin market. That movement is called slippage.
Limit order
You set the exact price you want. It fills only if the market reaches your price, so you control the price but not the timing. It may not fill at all.
When to use which
- Market order: you want to trade now and a small price difference is fine.
- Limit order: you have a target price and can wait.
Watch the spread
The gap between the buy and sell price is the spread. In thin markets it is wider, so a market order can cost more than you expect.
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This article is educational and is not financial advice. Crypto is volatile and trading involves risk.