What is the difference between Market and limit buy

The difference between market and limit buy orders lies in the execution method and the level of control the investor has over the transaction.

1. Market Buy Order:
   • A market buy order is an instruction to a broker to buy stock shares at the best available price in the current financial market.
   • It is an immediate purchase at the current market price, with no specified limit or maximum price.
   • Market buy orders are executed as quickly as possible, but the final price may differ slightly from the quoted price due to market fluctuations.
   • They are suitable for investors who want to buy stocks quickly at the current market price and do not want to wait for a specific price.
2. Limit Buy Order:
   • A limit buy order is an instruction to purchase stock shares at a specified maximum price per share.
   • It allows traders to execute trades at a desired price without having to constantly monitor market conditions.
   • The order will only be triggered if the stock price reaches or exceeds the set limit price. If the stock price does not reach the limit price, the order will not be executed.
   • Limit buy orders provide more control to the investor, allowing them to set a specific price at which they are willing to buy, but they may not guarantee execution if the stock price does not reach the limit.

In summary, the main differences are:

• Execution Speed: Market buy orders are executed immediately at the current market price, while limit buy orders wait for the stock price to reach the specified limit price.
• Price Control: Market buy orders offer less control over the execution price, as the investor accepts the current market price, whereas limit buy orders allow the investor to specify a maximum price, ensuring the trade will not execute above that price.