A market order fills right away at the best available price. A limit order fills only at your chosen price or better. In short: market orders prioritize speed, limit orders prioritize price.
| Market order | Limit order |
Priority | Speed | Price |
Fill price | Not guaranteed; slippage possible | Your price or better |
Execution | Almost always fills quickly | May not fill at all |
Good for | Quick entries and exits, emergency exits | Planned entries, profit targets |
Example (NQ)
Bid 19,800.75 / Ask 19,801.75. A market buy usually fills near the ask (19,801.75), but can fill higher if price moves fast. A buy limit at 19,795.00 fills only at 19,795.00 or lower, and stays open if price never gets there.
Slippage
Slippage is the gap between the price you expected and your fill, e.g. a market buy sent at 19,801.75 that fills at 19,803.00. It's most common in fast or thin markets, around the open and close, and during news.
News trading is allowed, but liquidity can drop and volatility can rise around news, which can lead to worse fills.
Before you place an order
Check the account, symbol, Buy/Sell direction, quantity and order type, then review your open positions and working orders after submitting.