Quant Interview Prep8 sections · 255 units
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Market Orders vs Limit Orders

Choosing how to trade

A market order executes immediately at the best available price. You pay the spread but get certainty. A limit order specifies the price you're willing to accept.

You might get a better price but might not execute at all. Liquidity takers send market orders. Liquidity providers (market makers) send limit orders. Understanding this distinction is fundamental to trading interviews.