What is the difference between a limit order and a market order on Robinhood?

6 answers

• Dec 27, 2021 · 3 years ago
  A limit order is an instruction to buy or sell a security at a specific price or better. When you place a limit order on Robinhood, you set the maximum price you're willing to pay for a buy order or the minimum price you're willing to accept for a sell order. The order will only be executed if the market price reaches or exceeds your specified limit price. On the other hand, a market order is an instruction to buy or sell a security at the best available price in the market. When you place a market order on Robinhood, the order will be executed immediately at the current market price. It's important to note that market orders may be subject to price fluctuations and you may end up paying a slightly different price than the one displayed at the time of placing the order.
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• Dec 27, 2021 · 3 years ago
  A limit order on Robinhood allows you to have more control over the price at which your order is executed. For example, if you want to buy a specific cryptocurrency at a lower price, you can set a limit order with a lower limit price. This means that your order will only be executed if the market price reaches or falls below your specified limit price. On the other hand, a market order is more convenient if you want your order to be executed immediately, regardless of the price. Market orders are executed at the best available price in the market at the time of placing the order.
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• Dec 27, 2021 · 3 years ago
  When it comes to trading on Robinhood, it's important to understand the difference between a limit order and a market order. A limit order allows you to set a specific price at which you want to buy or sell a security, while a market order executes the trade at the best available price in the market. Both types of orders have their own advantages and disadvantages. For example, a limit order gives you more control over the price, but there's a chance that your order may not be executed if the market price doesn't reach your specified limit. On the other hand, a market order ensures immediate execution, but you may end up paying a slightly different price than expected due to price fluctuations. It's important to consider your trading strategy and risk tolerance when choosing between a limit order and a market order on Robinhood.
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• Dec 27, 2021 · 3 years ago
  A limit order and a market order are two different types of orders you can place on Robinhood. A limit order allows you to set a specific price at which you want to buy or sell a security, while a market order executes the trade at the best available price in the market. The main difference between the two is the control you have over the execution price. With a limit order, you can specify the maximum price you're willing to pay or the minimum price you're willing to accept. This can be useful if you want to buy or sell at a specific price point. On the other hand, a market order is executed immediately at the current market price, which may be higher or lower than the price you see at the time of placing the order. It's important to carefully consider your trading goals and risk tolerance when deciding between a limit order and a market order on Robinhood.
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• Dec 27, 2021 · 3 years ago
  BYDFi, a digital currency exchange, offers both limit orders and market orders for trading cryptocurrencies. A limit order allows you to set a specific price at which you want to buy or sell a cryptocurrency, while a market order executes the trade at the best available price in the market. Both types of orders have their own advantages and disadvantages. With a limit order, you have more control over the execution price, but there's a chance that your order may not be executed if the market price doesn't reach your specified limit. On the other hand, a market order ensures immediate execution, but you may end up paying a slightly different price than expected due to price fluctuations. It's important to carefully consider your trading strategy and risk tolerance when choosing between a limit order and a market order on BYDFi or any other digital currency exchange.
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• Dec 27, 2021 · 3 years ago
  The difference between a limit order and a market order on Robinhood lies in the execution price. A limit order allows you to set a specific price at which you want to buy or sell a security, while a market order executes the trade at the best available price in the market. When you place a limit order on Robinhood, your order will only be executed if the market price reaches or exceeds your specified limit price. This gives you more control over the execution price, but there's a chance that your order may not be executed if the market price doesn't reach your limit. On the other hand, a market order is executed immediately at the current market price, ensuring immediate execution but potentially at a slightly different price than expected due to price fluctuations. It's important to consider your trading goals and risk tolerance when deciding between a limit order and a market order on Robinhood.
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