Please ensure Javascript is enabled for purposes of website accessibility
Search
Accessibility Menu

Market Order vs. Limit Order: Which to Use

A beginner's guide to these two basic broker order types.

By Matthew DiLallo – Updated Apr 24, 2025 at 5:17PM

Key Points

  • Market orders ensure immediate execution of a trade but don't control the price, risking overpaying or receiving less.
  • Limit orders target specific prices but may not execute, risking missed opportunities.
  • Choose market orders for urgency, limit orders for price control in stock transactions.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

Our Guides

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.