Market orders versus limit orders

A limit order names a price and fills only at that price or better; a market order names no price and fills at what the other side offers. They differ in price and certainty of execution.

Updated：2026-11-15

Limit orders

A limit order sets your own price: the highest price you will pay when buying, or the lowest you will accept when selling. It fills only if the market reaches that price, so the price is certain but execution is not.

Market orders

A market order names no price and fills at the prices available, so execution is more certain but the price is not. When the market moves fast or there are few orders, the fill can be far from the quote you saw.

Order duration

You will often see these options (names depend on your broker):

• ROD: valid for the day; any unfilled part stays until the close.
• IOC: fill immediately; whatever cannot fill is cancelled at once.
• FOK: fill entirely or cancel the whole order.

Things to note

• At limit up or down, during a halt or when liquidity is thin, either type may be hard to fill.
• Taiwan has daily price limits and tick sizes, so the price you enter must comply.
• The actual rules and screens follow the exchange and your broker.

This article only explains terms. Tenmizu does not provide investment recommendations and this is not investment advice.