text: what is the diffrence between market order and limit order in stocks?   stocks are quoted with bid and ask prices.   if you place a small market order to buy, you will get filled near the ask. if you place a small market order to sell you will get filled near the bid. market orders execute at the best market price going.  with a limit order you specify a maximum price you will pay or minimum price you will sell for. you might not get filled with a limit order.  if you really want to buy at the market, place a limit order 5 or 10 cents above the ask. do the same below the bid if you want to sell. this way, if there is a moment of illiquidity, you're not getting filled at some outrageous price.