Module 1 ยท Stock Market Basics
Market and limit orders are the two basic ways to buy or sell, and each has a trade-off.
A market order buys or sells immediately at the best available price. It is fast and almost always fills, but you may not know the exact price in advance.
A limit order sets the maximum price you will pay (to buy) or the minimum you will accept (to sell). It gives you price control but may not fill if the market never reaches your price.
There are also tools like stop-loss orders that trigger a sale when a price is hit, which can help manage risk - but they are not a substitute for understanding the stock.
Example: Titan
If you want to buy Titan but only below a certain price, you place a limit order at that level. If the price never falls there, your order simply does not fill.
What is the main advantage of a limit order?
When might you prefer a market order over a limit order, and vice versa?