Understanding Order Types: Market vs. Limit

Quick rundown on the difference between market and limit orders, because it still surprises me how many people don't fully grasp this, especially new retail. A market order is basically telling your broker, "Buy/sell this immediately, whatever the current best price is." You get instant execution, but you're at the mercy of the market maker's spread and potential slippage, particularly on less liquid assets or during fast moves. For example, if you market buy $XOP right now, you'll fill somewhere around 180.54, but could be slightly higher or lower depending on the live bid/ask. A limit order, on the other hand, is specific: "Buy/sell this only at this price or better." You control your entry/exit price precisely. If $CADUSD is at 0.72077 and you want to buy at 0.72000, you place a limit order; it won't execute unless the price drops to that level. You might not get filled, but you prevent bad fills. Understand which one you're using.