Market Order vs Limit Order

These are the two most fundamental order types, and choosing between them is a trade-off:

• Market order — 'fill me now, whatever the price.' Executes immediately at the best available price. Guarantees the trade happens; does not guarantee the price.
• Limit order — 'only at my price or better.' Guarantees the price; does not guarantee the trade happens.

The gap between them shows up in the bid-ask spread and in slippage — the difference between the price you expected and the price you got. In a large, liquid name the spread is tiny, so a market order fills essentially where you see it. In a thin or fast-moving name the spread widens, and a market order can fill noticeably worse than the last quote.

• Use a market order when getting in or out now matters more than a penny — e.g., exiting a losing trade at your stop.
• Use a limit order when price matters more than speed — e.g., buying a pullback to a specific level.

Order-type discipline is a small edge that compounds. Reflexively using market orders in illiquid names bleeds money to slippage; reflexively using far-away limits means missing good trades. The rule of thumb: market orders for urgency, limit orders for price control — and always widen your caution in thin, fast, or news-driven conditions where spreads blow out.

Because Entry Point Trading centers on large-cap US equities and major ETFs — the most liquid names — spreads are typically tight, giving you flexibility on both order types. Every signal shows its reasoning.