What are Market Orders and Limit Orders?

What is a Market Order?

A market order is executed as quickly as possible at the current market price after the user places the order.

When placing a market order, you can select “Order amount” or “Order total” to buy or sell.

For example, if you wish to buy or sell a specific amount of Bitcoin, you are recommended to select “Order amount”. However, if you want to buy Bitcoin with a specific amount of funds, like 10,000 USDT, using the “Order total” to place a market order is a better option.

Typically, these two features can be used to place both buy and sell orders. However, when you place the order after the system calculates the amount you can get, the asset price may undergo significant changes, and the assets you receive from the order may differ from the amount calculated before placing the order. In some special cases, the order would fail. This usually happens when the buy/sell ratio is close to or equal to 100%.

What is a Limit Order?

A limit order is an order you place in the order book with a specific price limit. It will only be executed when the market price reaches your limit price (or better). You can use a limit order to buy assets at a lower price or sell them at a price higher than the current market price.