When you place a market order to buy, you will buy at the quoted 'ask' price. When you place a market order to sell, you will sell to the quoted 'bid' price. The quoted bid/ask prices are the best available prices that buyers and sellers will pay/want.
When you place a limit order you are stating specifically what price you want to buy or sell a security for.
When placing orders for illiquid securities (such as pennies), DEFINITELY use limit orders. At some brokers, limit orders cost a couple of $ more than market orders, but they are well worth it.
by the way.. You can usually find the answer to questions like this through the 'help' link at your respective online broker site.
Thank you so much! I am amazed at how friendly and helpful everyone is on this board. I have been to other boards and some people seem like the biggest jerks if you are a newbie!
Posts: 5 | Registered: Jan 2004
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