@ring3

Market orders are buy or sell orders executed immediately at the best available price, often leading to quick, significant price movements, especially in less liquid markets. A large market order can cause slippage, where the price moves against the trader due to insufficient liquidity at the current price level. On the other hand, limit orders are placed to buy or sell at a specific price or better, meaning they are not executed immediately. These orders can help stabilize prices by creating a buffer against sudden price swings, but they can also contribute to price stagnation if there are too many unfilled orders at certain levels. Together, these order types create dynamics that influence market liquidity and price discovery.

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