Market and limit order

When a trader places a market order, the broker or exchange will execute the trade as soon as possible, at the current market price. Market orders are typically used when the trader wants to buy or sell an asset quickly, and is less concerned with the specific price they pay or receive.

A limit order, on the other hand, is an order to buy or sell an asset at a specified price or better. When a trader places a limit order, they are specifying the maximum price they are willing to pay to buy an asset or the minimum price they are willing to sell an asset for. If the asset reaches the specified price or better, the broker or exchange will execute the trade. Limit orders are often used when the trader wants to buy or sell an asset at a specific price, and is willing to wait for the market to reach that price.