Every time you trade a prediction market, you choose how to place the order. The two basic options — market and limit — involve a genuine trade-off between speed and price. Picking the right one for the situation is one of the simplest ways to trade more cheaply.
Market orders: speed over price
A market order executes immediately at the best price currently available in the order book. You are guaranteed to fill, which is its great advantage when you want in or out right now. The cost is that you pay the spread — you buy at the ask and sell at the bid — and on a thin market a large order can suffer slippage as it works through several price levels. Market orders trade certainty of execution for less control over price.
Limit orders: price over speed
A limit order lets you set the exact price you are willing to accept. A buy limit at 60¢ will only fill at 60¢ or better; until someone is willing to trade at your price, it sits in the book and waits. The advantage is control: you never pay more than you intended, and you can often buy at the bid or sell at the ask rather than crossing the spread. The risk is that your order may fill only partially, or not at all, if the market moves away from you.
Which should you use?
- Use a market order when speed matters most — a fast-moving event, or simply getting a position on in a liquid market where the spread is tiny.
- Use a limit order when price matters more than immediacy — on wider-spread or less liquid markets, when building a larger position, or whenever you have a specific price in mind.
Maker vs taker
There is a cost dimension too. A market order is a “taker” order: it removes liquidity from the book. A resting limit order is a “maker” order: it adds liquidity, and some platforms reward makers with lower fees or rebates. So on venues with maker incentives, patient limit orders can be cheaper than the per-trade fee alone suggests — one reason active traders favour them. To see how fees affect a trade, use the fee calculator; for sizing, the profit calculator.
Frequently asked questions
What is the difference between a market and limit order?
A market order fills immediately at the best available price, guaranteeing execution but paying the spread. A limit order sets the price you will accept and waits for a match, giving you price control but no guarantee of filling.
Which is better for a beginner?
On a liquid market with a tight spread, a market order is simple and the cost is small. On thinner markets or for larger positions, a limit order protects you from paying too much. Many traders default to limit orders to control price.
What is a maker order?
A maker order is a resting limit order that adds liquidity to the book, as opposed to a taker (market) order that removes it. Some platforms charge makers lower fees or pay rebates, which can make patient limit orders cheaper.