Glossary A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | 1 | 3 | 4 | 5 Definitions by InvestorWords.com   What is...? Price Type A market order means that you are willing to take whatever price is current for the stock you are buying or selling. This kind of order guarantees execution but not price. A limit order allows you to limit either the maximum price you pay or the minimum price you are willing to accept when buying or selling a stock. This kind of order guarantees price but not execution. There are several things to consider before you place a limit order: The stock price may never rise or fall to the limit you have specified, meaning that your order may never be executed. Limit orders are executed in the order in which they are received, so it is possible that a stock could reach your limit price yet not be filled because the stock's price fluctuated above or below your limit before your order could be submitted. There could be a sudden drop in stock price. Your order will be executed at your limit price, but the price of the security-due to negative news or some other event-continues to fall. This could leave you with a loss on your transaction. For more information on market and limit orders, click here. Copyright ©2009 by InvestorGuide.com. All Rights Reserved.