What is the difference between a market and limit order?
Ok, here’s the scoop, with a few more examples in anticipation of your next possible question. Let’s say PCU is at $90. I have a limit order to sell at $92. If it gets to $92 or higher, I’ll get my order filled. That’s one of the most common uses for a limit order, to sell a stock/option at a price you designate. On a market order, you put your order in, and whatever the price is at that moment is what you get, whether it’s 91, 92, or whatever. Limit orders work out pretty nice if the stock pops up to your limit price. The rub is when the stock is dropping. Say the market turns down, like today and what was up at 95 is now dropping fast. Well you see it at 94.40 by 94.60 (bid/ask) and put in an order to sell at 94.50, but the stock is moving too fast, so your order is not filled. by the time you put in another order, it could be at 94.20 by 94.30. With a market order, you’re out right away (in this case at 94.40). On the buy side, it works the other way around. If you put in a limit or
