Market and limit orders are two critical trading terms to be aware of before you begin trading. How you decide whether to use a limit order or a market order will depend entirely on what you are trying to achieve.
The advantage of limit orders is that you know what you will get in terms of price: limit orders guarantee you won't be matched with a worse price than what you specified.
You can also use limit orders to wait for the market to reach a certain price target, rather than just taking whatever is available in the present.
The disadvantage of limit orders is that there's no guarantee the order will completely fill (or fill at all).
Learn more about how to set Limit prices.
Note: Limit buy orders will only be placed on the orderbook if the limit price is below the current market price and limit sell orders will only be placed if the limit price is above the current market price. If the limit price you submit is not consistent with these conventions, the order will be executed immediately as a market order.
The drawback of a market order is that you’re not guaranteed the exact price you’re trying to buy or sell at. It all depends on what is available in the order book when your order is being executed.
However, if you want to create a short position if prices fall below the current market rate, then you'll need to use a stop loss order type instead.