Limit orders vs market orders explained
When to take the price the market is offering and when to name your own, with the trade-offs of each spelled out.
What you need first
- A basic familiarity with the trade screen — see the first spot trade guide.
- Five minutes. This is the single most useful concept in trading.
The one-line version
A market order says “fill me now, whatever the price”. A limit order says “fill me at this price or better, and wait if you have to”. You are choosing between certainty of execution and certainty of price. You cannot have both.
Step 1 — Place a market order
- Open Trade and select your market.
- In the order form, choose the Market tab.
- Enter an amount. There is no price box — that is the point.
- Confirm. It fills immediately against the best prices currently in the order book.
Use it when getting in or out right now matters more than a small difference in price, and the market is busy enough that the spread is narrow.
Watch out for slippage: in a thin market your order eats through several price levels and the average price you get can be noticeably worse than the price you saw.
Step 2 — Place a limit order
- Choose the Limit tab in the order form.
- Enter the price you are willing to pay (buying) or accept (selling).
- Enter the amount. The form shows the total.
- Confirm. If nothing matches your price, the order joins the order book and waits.
Use it when you have a price in mind, the market is thin or volatile, or you are simply not in a hurry.
Watch out for the obvious risk: it may never fill. If the market moves away, your order just sits there.
Step 3 — Manage an unfilled order
Open orders appear in the Open Orders list under the chart. From there you can cancel one at any time, and the funds it was holding are released back to your balance immediately. Orders can also fill partially — part of the amount trades, the rest keeps waiting.
Step 4 — Know why fees can differ
Exchanges usually distinguish between adding liquidity to the book and taking it away. A limit order that waits in the book adds; a market order that fills instantly takes. That distinction can affect the fee. The exact fee for your order is always shown on the ticket before you confirm — read it there rather than relying on general rules.
A simple rule for beginners
Use market orders for small amounts in busy markets when you want to be done. Use limit orders for anything larger, anything unusual, and any market where the order book looks thin. When in doubt, a limit order at a sensible price is the more careful choice.