📝 What is Market Order vs Limit Order?

🏦 What is Market Order vs Limit Order? 🔹 Market Order – What is it? A Market Order means you are telling your broker: 👉 "Buy or sell this stock immediately at the best available price in the market." You are not fixing any price. You simply want the trade to happen quickly — at whatever price the market gives at that moment. 🎯 Example of Market Order: Suppose stock "XYZ Ltd." is currently trading at ₹100. ✔️ You place a Market Buy Order — you may get it at ₹100 or ₹100.10 depending on market speed. ✔️ You place a Market Sell Order — it sells at ₹100 or ₹99.90 or so. ✅ Fast execution. ❌ But you have no control over the exact price — the price may slightly change (called slippage). 🔹 Limit Order – What is it? A Limit Order means you are telling your broker: 👉 "I want to buy or sell this stock but only at the price I choose or better." You decide the price yourself — and the order will stay there until the market hits your price. 🎯 Example of Limit Order: Stock "XYZ Ltd." is at ₹100. ✔️ You want to buy only if price comes down to ₹95 — so you place a Buy Limit Order at ₹95. ✔️ You want to sell only if price goes up to ₹110 — so you place a Sell Limit Order at ₹110. Until the price reaches ₹95 or ₹110, your order will not be executed. ✅ You get the exact price you want. ❌ But the order may remain unexecuted if the price never comes. ⚡ Difference in Simple Words: ✔️ Market Order is like saying in a shop — "I’ll buy apples at whatever price the shopkeeper says — but give me now!" ✔️ Limit Order is like saying — "I will only buy apples if you sell them for ₹80 per kg. Until then, I’ll wait." ✅ When should you use Market Order? ✔️ When you want to buy or sell fast. ✔️ When the exact price is not very important. ✔️ Example: You feel the stock will jump soon and want to enter quickly. ✅ When should you use Limit Order? ✔️ When you want a specific price. ✔️ When you can wait and are not in a hurry. ✔️ Example: You feel the stock will fall to ₹95, so you’ll only buy at ₹95. ❗ Important Tips: 🚫 In highly volatile markets, Market Orders may get executed at unexpected prices — be careful! ⌛ Limit Orders may never get completed if price does not reach your set limit — patience is key! 🎯 Super Quick Example Recap: You go to a fruit market: ✔️ Market Order: "Give me apples now at today’s price — no matter what!" ✔️ Limit Order: "I will buy apples only if they become ₹80 per kg — otherwise, I’ll wait!"