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Limit Order
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Market Order
Term category: Stocks
In 10 words or less:  An order that is executed at the current market price.

Definition: An order to buy or sell a stock at the current market price. If you are buying the stock, it is the ask price. If you are selling the stock, it's the bid price.

StockJargon Advice: Stock prices move very quickly, so placing a market order gives you the least control over what price you end up paying for a stock. You may enter an order to buy XYZ stock at $40/share but if the stock isn't very liquid, you may end up paying $42/share.

We tend to recommend using limit orders, unless the stock is a large stock with a lot of volume.

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