What are market and limit orders?

- Fidelity While market and limit orders are both used to buy and sell securities, the difference between them is how the trades are executed. Find out more about market and limit orders and how they can affect an investing and trading strategy. Quickly and easily enter your order.

What is the difference between marketable and non-marketable limit orders?

Marketable limit orders are executed immediately, like market orders. Non-marketable limit orders are outside the current price range. They usually are sent to a wholesaler or to the exchange for execution.

How to choose a market order?

Speed is the main consideration when choosing a market order. Limit orders and stop limit orders only execute when the market reaches the specified limit and/or stop price. For many investors, limit orders can help manage their active trading by automating their buys and sells according to desired prices.

What happens if the market price doesn't fall on a limit order?

If the market price does not drop far enough on a limit order, a buyer's order may not be filled. The risk inherent to limit orders is that should the actual market price never fall within the limit order guidelines, the investor's order may fail to execute.