🌀🌀Many students still do not understand the difference between 'limit orders' and 'market orders'. Today, I will summarize it for everyone.
🔹Limit order:
Orders executed at specified prices are placed in the order book waiting for matching.
Execution price: Specified price or better ( controllable ✅ )
Execution speed: Must wait for counterpart matching ( relatively slow ❌ )
Slippage risk: Price locked ( no slippage ✅ )
Fees: For USDC contracts, the fee for a successful limit order is 0% ( no fees ✅ )
🔹Core Advantage:
→ Control costs (price + fees), suitable for strategic limit orders.
→ Combining `Post Only` mode can achieve 'zero fee execution' (for USDC contracts, etc.).
🔹Applicable Scenarios:
▶ Price-sensitive trading
▶ Large orders reduce market impact
▶ Pursuing zero fees
Disadvantages:
▶ May be partially executed or not executed
▶ Need to actively manage prices
🔸Market order:
Orders executed immediately at the current market's best price.
Execution price: Executed at real-time order price ( uncontrollable ❌ )
Execution speed: Immediate execution ( extremely fast ✅ )
Slippage risk: Execution prices may deviate greatly during extreme fluctuations ( high slippage risk ❌ )
Fees: Taker fee rate 0.02% ( relatively high ❌ )
🔸Core Advantage:
→ Ensure immediate execution, suitable for chasing price increases or urgent liquidation.
🔸Applicable Scenarios:
▶ Quick entry and exit
▶ Snatching orders during volatile market conditions
Disadvantages:
▶ Costs are unpredictable (slippage + fees)
▶ Easily arbitraged by high-frequency trading
💡 Practical Tips:
> - Ordinary traders: Prefer using 'limit order + Post Only' (to avoid slippage + save on fees).
> - Extreme market conditions: Market orders are only used for stop-loss/breakout chasing, but need to tolerate slippage costs.
> - Large orders: Must use limit orders to place in batches to prevent market orders from crashing the market.
💹💹Wishing everyone abundant wealth 💹💹
The end.