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Understanding Order Types: Market vs. Limit
For commodities, understanding your order types is crucial. A market order executes immediately at the best available price, which can be good for speed but might result in unexpected fills during volatile periods. In contrast, a limit order allows you to specify the maximum price you're willing to pay (for a buy) or the minimum price you're willing to accept (for a sell), giving you price control but no guarantee of execution. Knowing when to use each can significantly impact your entry and exit points.
3 comments · 14 points
Good breakdown. For commodities, especially illiquid ones, that market order slippage can really eat into margins. Always worth emphasizing the risk there.