A limit order is a type of order to buy or sell a security at a specific price or better. When placing a limit order, the investor sets the maximum price (for sell orders) or the minimum price (for buy orders) at which they are willing to execute the trade. The order will only be executed if the market reaches or improves upon the specified price.
Market Order
A market order is an instruction to buy or sell a security immediately at the current market price. Unlike a limit order, which specifies a price, a market order prioritizes prompt execution over price. Market orders are executed as quickly as possible, and the investor accepts the prevailing market price.