What is the difference between a Market and Limit order?

Market orders

Market orders will go into market to execute at the best available price, however the execution and the price is not guaranteed. Market orders cannot be accepted outside of market hours or when trading in a particular stock is halted or suspended.

Limit orders

Limit orders allow you to set a maximum purchase price for your buy order, or a minimum sale price for your sell orders. If the market doesn't reach your limit price, your order will not be executed.

You can place an 'At Limit' order during market hours. You can also place an 'At Limit' order when the market is closed and it will be queued ready for processing when the market opens.

Please note that an 'At Limit' order will not be accepted, without any advice to you, if we consider the limit price to be too far away from the prevailing market price of that stock.

All orders must be submitted either 'At Market' or 'At Limit'. Limit orders can be amended or cancelled provided the order has not already been executed. Market orders cannot be amended or cancelled online during market hours, however please contact us on 13 15 19 Monday to Friday (8am – 7pm, Sydney time), if you wish to amend or cancel a market order.

Answers others found helpful

 

Disclaimer

This site is directed and available to and for the benefit of Australian residents only. © Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 ("CommSec") is a wholly owned, but non guaranteed, subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 and both entities are incorporated in Australia with limited liability.

By clicking on the "Download the CommSec App" buttons above, you will be directed to itunes.apple.com or play.google.com. These sites are not affiliated with CommSec and may offer a different Privacy Policy and level of security.

Top