Buy / Sell Limit / Market

Limit

When setting a Limit order, we determine the price level at which we want to carry out a transaction.

Buy limit / Purchase with limit / Limit order - the maximum price at which we want to buy.
Sell limit - the minimum price at which we want to sell.

Advantages of a Limit order include precise specification of the price, ensuring it won’t be exceeded, and lower commission fees.Disadvantages of a Limit order typically include a longer time required to execute the transaction.

Market

By executing a Market order, we opt for an immediate purchase or sale at the current orders.

Advantages of a Market order include the immediate execution of the transaction.Disadvantages of a Market order are higher commission fees and the potential for orders to be filled at a price different from the current one, which can be particularly noticeable in markets with lower liquidity.

Updated on: 25/10/2023

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