Order types

Market orders

A market order is an order type that allows you to purchase or sell stock at the best prevailing market price. Market orders are typically used when execution timing is valued over price.

Because market orders prioritize execution, the price at which your order fills may differ from the last quoted price you saw, particularly during periods of high volatility or in thinly traded stocks.

Limit orders

A limit order allows you to specify the price at which you wish to purchase or sell stock. If a limit order executes, it will be at the price specified or better: the limit price or lower for buy orders, and the limit price or higher for sell orders.

Limit orders are typically used when price matters more than timing of execution. Because the prevailing price may not reach your limit price, your limit order may go unexecuted.

Limit orders on Frec are Day orders: they remain active until the next close of trading, and are automatically canceled if unfilled.