Market order vs limit order — what’s the difference?
A market order buys/sells immediately at the going price; a limit order only executes at your chosen price or better. Knowing the difference avoids nasty surprises.
When you place a trade, you choose how it executes. A market order says "buy/sell right now at whatever the current price is" — it’s fast and almost always fills, but you don’t control the exact price, which matters in volatile or thinly-traded stocks. A limit order says "only buy at ₹X or lower / sell at ₹Y or higher" — you control the price, but it may not execute if the market never reaches your level.
Use a market order when getting in or out quickly matters more than a few paise (usually fine for large, liquid stocks). Use a limit order when price precision matters, in fast-moving or illiquid stocks, or to avoid overpaying — at the cost of possibly missing the trade.
There are variants too: a stop-loss order triggers a sale once a price is hit (risk control), and a stop-limit combines the two. The key habit is to think before you click: in a volatile stock, a careless market order can fill far from the price you saw, so limit orders are often the safer default.
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Common questions
Which is safer, a market or limit order?
A limit order is safer on price — it won’t fill worse than your chosen level — but it may not execute at all. A market order guarantees execution but not price, which can hurt in volatile or illiquid stocks.
When should I use a market order?
When speed of execution matters more than a small price difference, typically in large, highly-liquid stocks where the spread is tiny. Avoid them in thin or fast-moving stocks.