Key takeaways
- A market order prioritises execution rather than a specific price.
- A limit order sets a price boundary but may not execute.
- The displayed price can move before an order reaches the market.
- Order types are instructions, not guarantees of a profitable outcome.
What a market order does
A market order asks to trade at the best available prices when the order reaches the market. It can be useful when execution matters more than setting a price boundary, but the final price can differ from the last traded price, especially when prices are moving or market depth is thin.
Visual explainer
Market order
Submit
No fixed price boundary
Match
Available orders are used
Fill
Execution price is confirmed
What a limit order does
A limit order sets the highest price you are prepared to pay when buying, or the lowest price you are prepared to accept when selling. The trade-off is simple: the price boundary is explicit, but the order may remain unfilled or only partly fill.
The trade-off: price control versus execution certainty
Neither order type is automatically better. They solve different execution problems.
Visual explainer
Order-type trade-off
Market order
- Prioritises execution
- No fixed execution-price boundary
- Price can move
Limit order
- Sets a price boundary
- May not execute
- Can partially fill
Before placing either order
Check the market is open, the security and quantity are correct, and the platform's order preview matches your instruction. For a limit order, also check expiry or duration settings if the platform offers them.
- Confirm buy versus sell.
- Check quantity and estimated value.
- Read the order type and limit price carefully.
- Review fees before submission.
- Keep the contract note or transaction record after execution.
Use this guide with live TradingGuide Australia research
Sources
Sources were reviewed on 29 September 2026. Provider pricing and product terms can change; verify current terms with the provider before acting.