What is the difference between a market order and a limit order?

@andy 

A market order is an instruction to buy or sell a security at the prevailing market price. It is executed immediately at the best available price in the market. Market orders prioritize the speed of execution rather than the specific price. This means that the actual execution price for a market order may differ from the expected price, especially in fast-moving markets.

On the other hand, a limit order is an instruction to buy or sell a security at a specific price or better. It allows an investor to set a target price at which they are willing to buy or sell, and the order is only executed if the market price meets or exceeds the specified limit price. Limit orders provide more control over the execution price, but there is no guarantee of immediate execution, especially if the market price does not reach the specified limit.

In summary, a market order focuses on immediate execution at the best available price, while a limit order allows investors to specify a desired price but may not guarantee immediate execution.