Beginner
7 min readEducationalMarket and limit orders
When to demand speed, when to demand price, and how stops interact with both.
Market orders
Immediate execution at the best available prices. In thin books this can mean meaningful slippage.
Limit orders
You set the worst acceptable price. Execution is not guaranteed, which is the trade-off.
Stops
A stop is a trigger, not an order type by itself. Stop-market guarantees exit, stop-limit guarantees price.
Knowledge check
Answer to reveal the explanation
1. Which order can fail to protect you in a fast gap?
0 of 1 correct
Key takeaways
- Market = certainty of fill.
- Limit = certainty of price.
- Stop-limit can leave you in a losing position.
Zoflix is a simulated trading environment for education only. Prices and results are for demonstration and do not represent financial advice or real trading performance.