Understanding Order Types: Market vs. Limit

Let's cut through the noise on order types. You've essentially got two main choices: a market order or a limit order. A market order is simple: you're telling your broker to buy or sell right now at the best available price. It guarantees execution, but not price. If you want to buy $BBL at 64.18, a market order means you'll get filled at 64.18, or 64.19, or whatever the very next price is. A limit order, on the other hand, specifies a price. You're saying, "I'll buy $LCO, but only if I can get it at 26.90 or lower." It guarantees price (or better), but not execution. If $LCO never hits your limit, your order won't fill. Each has its place; one for speed, one for precision.