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A market order is one in which your buy/sell request is executed at the current market price of that share
A limit order is one in which your buy/sell request is executed only when the market price of the stock equals the limit price you set
Example:
Assuming stocks of XYZ ltd are trading at Rs. 100 and you place a market order for 10 shares then, 10 shares of XYZ limited would be bought for you at the price of 100 per share + the brokerage & taxes
If you place a limit order for the same at Rs. 95 and the price of XYZ starts going down, the moment the price of XYZ limited touches 95 your order would be executed and 10 shares of XYZ at Rs. 95 per share would be bought for you.
What else can I help you with?
What is the difference between market fragmentation and market consolidation?
in financial market literature, market fragmentation refers to the same security traded in multiple exchanges, so the order flow for security is "fragmented" into a number of exchanges. In contrast, market consolidation refers to the status where all trade for the same security is done in a single exchange.
What is the difference between product oriented and market oriented?
Production orientation means producing product according to the goods acts and here is the seller king. and market orientation means producing the product according to the customer wants needs to satisfy them in order tho achieve the organizational goals
What is E-commerce network marketing?
Network Marketing As It Relates To E-commerce!Since the late 1990's all Network Marketing companies have gone to the internetto market their product or services. There is no difference between the old and the new way other than the internet itself. People can still buy many of the products or services from a catalog or brochure/or order online.The advantage of E-commerce is that the world is your marketplace. You still have to go out and compete for your market share. Get Your Share!
How do you get info about consumers in order to identify a target market?
Conduct a survey.
Producers use market research in order to do what?
Find out what consumers want to buy
What is the difference between a stop order and a stop limit order on the thinkorswim platform?
A stop order becomes a market order when the stock reaches a certain price, while a stop limit order becomes a limit order when the stock hits a specified price.
What is the difference between a trailing stop limit and a trailing stop?
A trailing stop limit is a type of order that combines a trailing stop with a limit order, allowing investors to set a limit on the price at which the order will be triggered. A trailing stop, on the other hand, is a type of order that adjusts the stop price as the market price moves in a favorable direction, helping to lock in profits.
What is the difference between a maker fee and a taker fee in the context of trading?
A maker fee is charged when a trader adds liquidity to the market by placing a limit order that is not immediately filled, while a taker fee is charged when a trader removes liquidity by placing a market order that is immediately filled.
What is the difference between a stop and a stop-limit order?
The stop limit order combines the characteristics of a stop order and a limit order. A basic stop order will buy/sell your security at the market price once your stop has been reached or passed. A stop limit order will buy/sell the security at a specified price once the stop has been reached or passed. If you use a stop limit, and your limit is too high/low your order may not get filled which will negate the purpose of putting the stop on in the first place. I tend to stick with stop orders if I am trying to protect a loss on a security.
What is the difference between a limit order and a stop order in trading?
A limit order is a request to buy or sell a stock at a specific price or better, while a stop order is a request to buy or sell a stock once it reaches a certain price.
What is the difference between a stop loss and a stop limit order in trading?
A stop loss order is a type of order that automatically sells a stock when it reaches a certain price to limit losses. A stop limit order is similar, but it only sells the stock at a specific price or better after reaching the stop price.
What is the difference between a work order and a purchase order?
what is the difference between a work order and a purchase order?
What are my options for selling stock?
A few options for selling your stock are market order (it becomes immediately executed at the current market price), limit order (it is executed at the price you set).
What is the difference between taker and maker fees in trading platforms?
Taker fees are charged when you take liquidity from the market by placing an order that is immediately filled, while maker fees are charged when you provide liquidity to the market by placing an order that is not immediately filled.
What is a buy limit order above market price and how does it work in trading?
A buy limit order above market price is an instruction to purchase a stock at a specific price that is higher than the current market price. This order will only be executed if the stock's price reaches the specified limit price or lower. It allows traders to set a maximum price they are willing to pay for a stock, helping them control their purchase price and potentially secure a better deal.
How many types of trade are there?
All trades are made up of separate orders, that are used together to make a complete trade. All trades consist of at least two orders (one buy and one sell order), usually with one order to enter the trade, and one or more orders to exit the trade. A single order is either a buy order or a sell order, and an order can be used either to enter a trade or to exit a trade. If a trade is entered with a buy order, then it will be exited with a sell order, and vice versa. For example, if a trader expected the market's price to go up, the simplest trade would consist of one buy order to enter the trade, and one sell order to exit the trade. Conversely, if a trader expected the market's price to go down, the simplest trade would consist of one sell order to enter the trade, and one buy order to exit the trade. If this last example seems backwards, see the shorting entry in the trading glossary for an explanation. Traders have access to many different types of orders that they can use in various combinations to make their trades. The following explanations will explain each of the order types, and how these orders are used in trading. Note that many traders do not fully understand all of these order types, and they may seem slightly abstract at first, but their use will become clearer once you start to use them in your trading. Market Orders (MKT) Market orders are orders to buy or sell a contract at the current best price, whatever that price may be. In an active market, market orders will always get filled, but not necessarily at the exact price that the trader intended. For example, a trader might place a market order when the best price is 1.2954, but other orders might get filled first, and the trader's order might get filled at 1.2956 instead. Market orders are used when you definitely want your order to be processed, and are willing to risk getting a slightly different price. Limit Orders (LMT) Limit orders are orders to buy or sell a contract at a specific or better price. Limit orders may or may not get filled depending upon how the market is moving, but if they do get filled it will always be at the chosen price, or at a better price if there is one available. For example, if a trader placed a limit order with a price of 1.2954, the order would only get filled at 1.2954 or better, if it got filled at all. Limit orders are used when you want to make sure that you get a suitable price, and are willing to risk not being filled at all. Stop Orders (STP) Stop orders are similar to market orders, in that they are orders to buy or sell a contract at the best available price, but they are only processed if the market reaches a specific price. For example, if the market price is 1.2567, a trader might place a buy stop order with a price of 1.2572. If the market then trades at 1.2572 or above, the trader's stop order will be processed as a market order, and will then get filled at the current best price. Stop orders are processed as market orders, so if the stop (or trigger) price is reached, the order will always get filled, but not necessarily at the price that the trader intended. Stop orders will trigger if the market trades at or past the stop price, so for a buy order, the stop price must be above the current price, and for a sell order, the stop price must be below the current price. Stop Limit Orders (STPLMT) Stop limit orders are a combination of stop orders and limit orders. Like stop orders, they are only processed if the market reaches a specific price, but they are then processed as limit orders, so they will only get filled at the chosen price, or a better price if there is one available. For example, if the current price is 1.2567, a trader might place a buy stop limit order with a price of 1.2572. If the market trades at 1.2572 or above, the stop limit order will be processed as a limit order. If the market continues to trade at 1.2572, the limit order will get filled at 1.2572 or at a better price if there is one available. Stop limit orders may or may not get filled depending upon whether or not the market reaches the chosen price, and then depending upon how the market moves. Stop limit orders will trigger if the market trades at or past the stop price, so for a buy order, the stop price must be above the current price, and for a sell order, the stop price must be below the current price. Market if Touched Orders (MIT) Market if touched orders are identical to stop orders, except that they are used when the market price has already traded past the stop price, and the trader only wants the order to be processed if the market price comes back to the stop price. For example, if the market price is 1.3010, and the trader places a buy market if touched order with a price of 1.3001, the order will only be processed if the market trades at or below 1.3001. If the order is processed, it will be processed as a market order, and will get filled at the current best price. Market if touched orders will trigger the opposite way than a stop order, so for a buy order, the trigger price must be below the current price, and for a sell order, the trigger price must be above the current price. Limit if Touched Orders (LIT) Limit if touched orders are identical to stop limit orders, except that they are used when the market price has already traded past the stop price, and the trader only wants the order to be processed if the market price comes back to the stop price. For example, if the market price is 1.3010, and the trader places a buy market if touched order with a price of 1.3001, the order will only be processed if the market trades at or below 1.3001. If the order is processed, it will be processed as a limit order. If the market continues to trade at 1.3001, the limit order will get filled at 1.3001 or at a better price is there is one available. Limit if touched orders will trigger the opposite way than a stop limit order, so for a buy order, the trigger price must be below the current price, and for a sell order, the trigger price must be above the current price
What is the difference between market fragmentation and market consolidation?
in financial market literature, market fragmentation refers to the same security traded in multiple exchanges, so the order flow for security is "fragmented" into a number of exchanges. In contrast, market consolidation refers to the status where all trade for the same security is done in a single exchange.
