What is the difference between market orders and limit orders?

Market orders are transactions meant to execute as quickly as possible at the current market price. Limit orders set the maximum or minimum price at which you are willing to complete the transaction, whether it be a buy or sell.

What is a buy limit order?

Buy Limit: an order to purchase a security at or below a specified price. Limit orders must be placed on the correct side of the market to ensure they will accomplish the task of improving the price. For a buy limit order, this means placing the order at or below the current market bid. 1

What is a limit order & stop order?

Limit and stop orders indicate that you want to buy or sell a security at a specified price rather than the market price. A limit order is visible to the market and instructs your broker to fill your buy or sell order at a specific price or better.

What happens if the market price doesn't fall on a limit order?

If the market price does not drop far enough on a limit order, a buyer's order may not be filled. The risk inherent to limit orders is that should the actual market price never fall within the limit order guidelines, the investor's order may fail to execute.