Limit Order:A limit order sets the maximum or minimum price at which willing to buy or sell. However, unlike market orders, the trade will only get executed when the price breaches the level that has been specified. After the setting the price limit, the market will give priority to the price in the favorable direction under the principle of “buy low and sell high”.
For example, the last transaction price of BTCUSDT is $12,000. If you want to buy at a cheaper price of $11,900, then you need to set the limit price at $11,900. When the price falls below or equals to $11,900, the buy order will be automatically executed. However, if you set the limit price at $12,100, according to the “buy low” principle, the order will be immediately traded at $12,000, cause $12,000 is more favorable to users than $12,100.
Market Order:A market order is an order to buy or sell at the best available price and is normally executed on an immediate basis. It does not need to specify the price and the order is executed at the market price.