# (1) Select between "Market Order" and "Limit Order"

### FAQs:

* [**What's the difference between "Market Order" and "Limit Order"?**](#whats-the-difference-betwen-market-order-and-limit-order)
  * [Market Order](#market-order)
  * [Limit Order](#limit-order)
  * [Key Differences](#key-differences)

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## Step One: Select between Market Order or Limit Order.

![](https://lh7-rt.googleusercontent.com/docsz/AD_4nXfdgvCKo6Yymu4jyP27AJbT2TF6EchSauxRC_1kxzx71RJuobspKOADcVn5xQDBxxo7PZ0rXzysIuQn10bREpw5A6CXwKXFxG2zMumUBf2zzDhOC8Nef6ElNxo0dC_N_3ZFXVpel98C56oidcSNxJ1TdOk?key=AjHljL4E58k2V3zq65rebA)

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Let us first understand the differences between a market and limit order to better help you decide which trade you’d like to place.

### What's the difference betwen "Market Order" and Limit Order"?

#### Market Order

* Definition: A market order is an order to buy or sell a crypto asset immediately at the best available current price in the market.
* Execution:
  * Speed: Market orders are executed quickly since they are filled at the current market price.
  * Price Uncertainty: Traders do not control the exact price at which the order will be executed. The execution price may differ slightly from the last traded price due to market fluctuations, especially in volatile markets.
* Use Case:
  * Ideal for traders who want to enter or exit a position quickly and are willing to accept the current market price.
  * Often used in fast-moving markets or when liquidity is high.

#### Limit Order

* Definition: A limit order is an order to buy or sell a crypto asset at a specific price or better.
* Execution:
  * Price Control: Traders set a specific price at which they want to buy (for a buy limit order) or sell (for a sell limit order). The order will only be executed if the market reaches that price.
  * Timeframe: Limit orders may not be filled immediately and can remain open until the specified price is reached or until the trader cancels the order.
* Use Case:
  * Ideal for traders who want more control over the price at which they enter or exit a position.
  * Useful for setting specific entry or exit points, especially in volatile markets or when trading less liquid assets.

#### Key Differences

| Feature                | Market Order                          | Limit Order                                         |
| ---------------------- | ------------------------------------- | --------------------------------------------------- |
| Execution Speed        | Quick, filled at current market price | May take time to fill, depending on price           |
| Price Control          | No control over execution price       | Control over the price at which the order is filled |
| Market Conditions      | Best for fast-moving markets          | Best for precise entry/exit strategies              |
| Guarantee of Execution | Likely to be filled immediately       | No guarantee of execution if the price is not met   |

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