Market Orders vs Limit Orders: How to Choose Between Them

Market orders vs limit orders is one of the first decisions you make on every trade, and the right answer depends on what matters more in that moment: getting filled immediately, or getting a specific price.

What Each Order Does

A market order buys or sells straight away at the best available price. A limit order sets the price you are willing to trade at and waits on the order book until the market reaches it, which may never happen.

When a Market Order Makes Sense

Market orders suit situations where speed matters more than the last fraction of the price: entering or exiting quickly, trading a deep and busy market, or placing a small order relative to the size available near the current price. The trade-off is that you accept whatever price the book offers, so a large order in a thin market can fill at a worse average price than the one you saw.

When a Limit Order Makes Sense

Limit orders suit situations where the price matters more than timing: buying on a dip you are prepared to wait for, selling at a level you have chosen, or placing a larger order you do not want pushing through several price levels. The trade-off is that the order may only partly fill, or not fill at all.

How Fees Differ

Order type also affects cost. An order that rests on the book and fills later is a maker order, while one that fills immediately against existing orders is a taker order. On Bitval, spot fees are 0.12% maker and 0.145% taker, so a limit order that rests on the book is charged the lower rate.

A Simple Way to Decide

• Need to trade now and the order is small relative to the book? A market order is usually fine.
• Care about the exact price, or the order is large? Consider a limit order.
• Not sure how much size sits near the price? Check the order book first.

Mixing Both

Many traders use both, depending on the trade. The skill is not picking one permanently, it is matching the order type to what that particular trade needs. Bitval supports both market and limit orders on its spot markets.

You can create a Bitval account and try both order types on live markets.

This article is for informational purposes only and does not constitute financial advice. Trading crypto carries risk, including the loss of your capital.