Read in order or choose a section from the contents. All sections are open; collapse those you do not need right now.
Market and limit orders
A market order seeks execution at the best available prices but does not fix the final price. In a less liquid market, the actual result can differ materially from the last displayed price.
A limit order sets a maximum purchase price or minimum sale price. It controls price, but may fill only partly or not at all.
After the trade
An executed trade creates obligations to deliver cash and securities. Timing depends on the venue and instrument. Check available funds, settlement currency, and all applicable charges before trading.
- Verify ticker, venue, and currency.
- Set quantity and order type.
- Reconcile execution status and the broker report.
Why an order can produce a surprise
The last displayed price may have only a small quantity available. A larger market order can fill in several parts at different prices. The last price is not a promise for the entire order.
A limit order sets a price boundary but may wait for a matching order and remain unfilled. Before confirming, compare quantity, available liquidity, order validity, and the total amount including charges. Afterwards, check whether the order filled fully, partly, or not at all.
Check your understanding
Answer in your own words before opening the reference answer. This is a self-check, not a knowledge assessment.
What does a market order not guarantee?
Show reference answer
A market order does not guarantee price.
What does a limit order not guarantee?
Show reference answer
A limit order does not guarantee execution.
What else affects the total cost?
Show reference answer
Fees and FX conversion affect total cost.
This material is educational and does not take account of your objectives, financial position, or risk tolerance.