What is a limit order — and what is a market order?
When you buy or sell, you choose an order type. With a limit order you set the boundary yourself: "buy at 100 at most" or "sell at 120 at least". The trade only happens if the market reaches your price — otherwise nothing happens. With a market order you say "trade now, at the best price there is". It always goes through, but you do not know exactly at what. Many banks use a limit order as the default, and it is usually the right choice.
The dotted line is your price. The trade only happens when the price touches it.
A worked example
The stock shows 100. You want to buy 50.
- Limit order at 100: You get up to 50 at 100 or below. If the price rises to 101 before the order arrives, you get nothing — and can place a new one.
- Market order: The order takes the cheapest sellers first. If there are 20 at 100.00, 20 at 100.40 and 10 at 101.50, you pay 100.46 on average. In a large stock the difference is negligible. In a small stock with few sellers you can end up 5% above the displayed price.
When to use which
- Limit order: Almost always. Especially in small stocks, outside exchange hours and on turbulent days. Set the limit close to the current price — a little above when buying, a little below when selling — then it goes through without you risking a surprise.
- Market order: When you just want in or out now in a large, liquid stock or ETF, and half a percent does not matter. Never in small stocks.
How long the order lives
A limit order can be valid for the day ("day order") or for several days or weeks ("good till cancelled"). If you place an order to buy at 90 while the stock is at 100, it can sit waiting for weeks — and suddenly go through one day when bad news arrives and the price dips. You got your price. Whether it was a good price that day is another question. Check your open orders regularly.
The typical beginner's mistake
Placing a market order at 10 in the evening in a small stock. It queues until the exchange opens at 9 — and then goes through at the morning's first price, whatever has happened in the meantime. Use a limit when the exchange is closed. Always.
How you see it in Kiggo
Kiggo does not trade, so you place the order in your bank's or broker's trading window. But Kiggo's "Get started" guide shows what a trading window looks like and what the fields mean, so the first trade is not a guess. Kiggo's price is delayed about 15 minutes — use the real-time price in the trading window when you set your limit.
Related terms
Frequently asked questions
What happens if my limit order does not go through?
Nothing — the money stays on the account, and the order expires or keeps waiting, depending on what you chose. You can always change or delete it.
Can a limit order go through partially?
Yes. If you want to buy 100 at 100 and there are only 60 at that price, you get 60. The rest waits. Some providers charge commission for each part — check the price list.
Which order type does my bank use by default?
Most banks and brokers suggest a limit order with the current price filled in. Check that the "limit" or "price" field is filled before you press — and that it does not say "market" or "best".
Kiggo explains — Kiggo does not advise. We never tell you what to buy or sell, and key figures can only be compared between companies in the same industry. The decision is yours. Last updated 2026-09-23.
Written by Claus Frisch, founder of Kiggo. Not an adviser, not a bank — Kiggo explains, you decide.
