In the fast-paced world of stock trading, every second and rupee count. Here, we’ll simplify the difference between Market and Limit orders.
Stock orders are instructions you give to your broker to buy or sell stocks on your behalf. They determine how and when your trades are executed, influencing your investment strategy.
Market orders buy/sell at the best available market price, ensuring fast execution. Ideal for highly liquid stocks or during times of market stability.
Limit orders specify a desired buy/sell price. The order is only filled if the market price reaches your set limit. This offers greater control but may take time to execute.
You can consider market orders for news-driven investments, exiting volatile positions, or trading large quantities of highly liquid stocks.
You can utilize limit orders to target specific entry or exit prices, protect against price swings, or manage illiquid stocks with lower trading volume.