What are limit and market orders?

1. Limit Orders:

Limit orders are a common type of order that's used in stock trading. Unlike market orders, which are executed at the best available price, limit orders are only executed at a specific price (or better). In this sense, they're a bit like placing a "take it or leave it" offer on the market.

For Ex.: if you place a limit buy order for Rs. 50, you're essentially saying "I'm willing to buy this stock at Rs.50 or less." The order will only be filled if the stock price drops to Rs. 50 or lower.

2. Market Orders

Market orders are one of the simplest and most common order types. They're used to buy or sell a security at the best available price. When you place a market order, you're essentially telling the market that you're willing to pay the current market price for the security. This type of order is typically used when speed is more important than price, since it's guaranteed to be executed right away. However, since market orders don't allow you to specify a price, you may end up paying more (or selling for less) than you'd like.

Important details:

• Limit orders of Rs 0 will be rejected by Tiqs. Earlier, a limit order at Rs 0 was placed as a market order on the exchange.
• Your limit order will get executed as a market order if for your -
  • Buy limit order: the limit price is greater than the best offer price.
  • Sell limit order: the limit price is less than the best bid price.

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