Key takeaways
- Market orders fill immediately at the best available price; limit orders fill only at your price or better.
- Stop orders trigger at a level and then execute as market orders, so they can slip.
- Stock orders may join auctions; crypto limit orders can earn lower maker fees.
The two basic orders
| Market order | Limit order | |
|---|---|---|
| Priority | Speed of execution | Price |
| Fill guaranteed? | Almost always | No |
| Price guaranteed? | No (slippage possible) | Yes, your price or better |
| Crypto fee type | Taker | Usually maker if it rests |
Stop orders
A stop order waits for a trigger price, then becomes a market order. Used to exit losing trades (stop-loss) or to enter on breakouts. Some venues offer stop-limit orders, which become limit orders instead, avoiding slippage but risking no fill.
Market differences
- Forex: orders are filled by your broker against its liquidity. Stops can slip at the weekly open or around news. Some brokers offer guaranteed stops for a fee.
- Stocks: orders placed while the exchange is closed can join the opening auction. Market orders on thinly traded shares can fill far from the last price.
- Crypto: order books vary in depth by exchange; a large market order on a small coin can move the price significantly. "Post-only" limit orders guarantee maker status.
Time in force
- Day: cancelled at the end of the session.
- GTC (good till cancelled): stays until filled or cancelled.
- IOC / FOK: fill immediately (partly or wholly) or cancel.
Choosing
Use market orders when getting in or out matters more than a few pips or cents. Use limit orders when price matters and you can accept not being filled. Always know where your exit is. Costs: trading fees explained.
Common questions
Can a limit order fill at a better price?
Yes. A buy limit fills at your price or lower; a sell limit at your price or higher.
Why wasn't my limit order filled when the chart touched my price?
Charts may show mid or bid prices, and other orders at your price may have been ahead in the queue.