148: John Grady – The Order Book—What Traders Must Know About Supply and Demand
Chat With Traders
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The Difference Between a Market Order and a Limit Order
A limit order means, let's say you and I are participants in the market. We're only willing to do a transaction at those prices. And then when someone hits a limit order, that is a market order. Now if I step up and say, you know what? Okay, fine. I will buy from you at six. I have now used a market order to hit your limit order at six. And then the transaction is conducted at six. So limit orders are visible in the order book and market orders are not.
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