Market order vs Limit order

A market order executes immediately at the best available price on the order book. You're guaranteed a fill (if liquidity exists) but not a specific price. Best for when you want to trade now and the current price is acceptable.

A limit order lets you set the exact price. It only executes at your price or better. You're guaranteed a price but not a fill. Best for when you're willing to wait for a better entry point.

Large market orders can "eat through" the order book, filling at progressively worse prices. This is called slippage. Limit orders avoid slippage entirely since you set the maximum price.

Use market orders for small trades in liquid markets where speed matters. Use limit orders for larger trades, less liquid markets, or when you have a specific price target. Most experienced traders primarily use limit orders.