What is the difference between a market order and limit order?

kav4

kav4

Senior Manager - Equity Analytics

Posts : 369
Equity Stars : 5242
Reputation : 36
Join date : 2011-06-17

What is the difference between a market order and limit order?

Fresher

Fresher

Moderator

Posts : 1498
Equity Stars : 7514
Reputation : 163
Join date : 2011-02-04

market order fills the order at the current prices - sell order: fills the order with highest bid, buy order: fills with the lowest ask

limit order fills the order for that price when available or above or below for sell and buy orders respectively

kav4

kav4

Senior Manager - Equity Analytics

Posts : 369
Equity Stars : 5242
Reputation : 36
Join date : 2011-06-17

Thank you for the explanation.

raa

raa

Manager - Equity Analytics

Posts : 246
Equity Stars : 5068
Reputation : 23
Join date : 2011-03-22

So If I were to sell 10,000 shares of a stock and the buyers for that stock were 5000 at price A and 5000 at price B, a market sell order would allow me to sell all 10k shares immediately?

Fresher

Fresher

Moderator

Posts : 1498
Equity Stars : 7514
Reputation : 163
Join date : 2011-02-04

yes

lbnnirmal

lbnnirmal

Senior Manager - Equity Analytics

Posts : 308
Equity Stars : 5145
Reputation : 14
Join date : 2011-07-07

But wts hpn if we need to buy 10,000 shares at price 15 and there are seller A who have 5000 shares @ 14.50 and B who have shares @ 16.90 so in this case wt will happens to my order???

raa

raa

Manager - Equity Analytics

Posts : 246
Equity Stars : 5068
Reputation : 23
Join date : 2011-03-22

If its a market order, I think it will buy from both... but if its a limit order then you specify the price which is 15/-

Then you will buy up 5000 shares from seller A at 14.50 and your order will remain on the order book at 15/- for the remaining 5000 shares while the seller will be 5000 shares at 16.9/-

lbnnirmal

lbnnirmal

Senior Manager - Equity Analytics

Posts : 308
Equity Stars : 5145
Reputation : 14
Join date : 2011-07-07

raa wrote:If its a market order, I think it will buy from both... but if its a limit order then you specify the price which is 15/-

Then you will buy up 5000 shares from seller A at 14.50 and your order will remain on the order book at 15/- for the remaining 5000 shares while the seller will be 5000 shares at 16.9/-

Thnx Bro 4 d information that you provided !! That means if we are going 2 sell 5000 shares @ 14.50 and if there there are three buyers who willing to buy shares A- 15.00 1500 shares , B-15.10 2000 shares and C-14.00
If our order is limited then we can sell shares to A and B. Then other 1500 shares will remain on order book. isn't it??

raa

raa

Manager - Equity Analytics

Posts : 246
Equity Stars : 5068
Reputation : 23
Join date : 2011-03-22

yup... that is how i understand it!

Sponsored content

Name*:
Phone number:
Email address*:
Comments*:
* - required fields	Learn

Name*:
Phone number:
Email address*:
Comments*:
* - required fields	Learn

Latest topics

What is the difference between a market order and limit order?

1 What is the difference between a market order and limit order? Tue Jul 19, 2011 7:37 pm

kav4

2 Re: What is the difference between a market order and limit order? Tue Jul 19, 2011 8:07 pm

Fresher

3 Re: What is the difference between a market order and limit order? Tue Jul 19, 2011 8:23 pm

kav4

4 Re: What is the difference between a market order and limit order? Wed Jul 20, 2011 11:04 am

raa

5 Re: What is the difference between a market order and limit order? Wed Jul 20, 2011 11:19 am

Fresher

6 Re: What is the difference between a market order and limit order? Wed Jul 20, 2011 1:44 pm

lbnnirmal

7 Re: What is the difference between a market order and limit order? Wed Jul 20, 2011 2:13 pm

raa

8 Re: What is the difference between a market order and limit order? Thu Jul 21, 2011 8:20 am

lbnnirmal

9 Re: What is the difference between a market order and limit order? Thu Jul 21, 2011 12:36 pm

raa

10 Re: What is the difference between a market order and limit order?

Sponsored content

New topics