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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