Understanding Order Types: Market vs. Limit

When placing a trade, you typically choose between a market order and a limit order. A market order is executed immediately at the best available price, which is great for speed but might not be the exact price you saw, especially in volatile markets. A limit order, on the other hand, lets you specify the maximum price you're willing to pay to buy (or minimum to sell), guaranteeing your price but not necessarily execution if the market doesn't reach your specified level.