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Your way into crypto
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Market or limit?
We wanted to take a closer look at execution decisions, so we took to Bay Street and asked traders how they actually place orders. For those we spoke to, the choice came down to three things: timing, order size, and how much certainty they wanted at that moment.
Not sure what a market or limit order is? Skip to the bottom for definitions.
Here’s what we asked:
Q: Everyone seems to explain market and limit orders almost the same way but they don’t seem to use them the same way. In practice, how do you consider the two?
A: I ask myself what matters more to me right now, getting filled or getting a good price. To me a market order prioritizes certainty, so I know I will get filled. I use a limit order when I care more about the price I am willing to pay. It becomes a question of self-restraint and how much I want to hold the position.
Q: When does a market order make the most sense to you?
A: There isn’t really a specific rule you have to use for order types, but I use market orders when the timing matters, like around news. I guess I could sum it up by saying, when I want to participate immediately and accept that the price I get might slip a bit.
Another trader put it simply: “A market order is me agreeing to whatever the market is offering me right now.”
Q: When do traders use limit orders?
A: When they have a clear thesis and time to wait, a limit order sets a boundary. It says this is the price I am comfortable with. If the market never reaches it, in either direction, that information matters to me too. Don’t forget, limit orders are about intention and accepting that you might not get the buy or sell price you want.
Q: How much does order size affect the choice?
A: To me, a lot. For small trades, many traders barely think about it. As size increases, market impact becomes real. Large market orders can move the price against you as they fill.
When the order is bigger, one trader told us, he slows everything down. “I don’t want to push the market and end up paying more just to get in.”
Q: Does liquidity change the decision?
A: Absolutely. In liquid markets, size is easier to absorb without slippage. Liquidity and size travel together.
Q: Is one order type safer than the other?
A: Market orders carry price risk, and limit orders carry execution risk, so there is always risk. You just have to choose which risk you are more comfortable with at that moment. Everyone should know that in trading, risk is inherent. The type of order has nothing to do with safety.
On platforms like Newton that use a Request for Quote (RFQ) model, market orders work differently than in traditional order books. Trades are executed through liquidity partners who provide a firm price that is held briefly, typically for up to 10 seconds, so the price shown is the price received. This can reduce uncertainty around slippage, but it does not remove trading risk.
Q: How do emotions factor into trading?
A: More than most people want to admit, at least out loud. That’s why some traders use market orders to prevent overthinking. Others rely on limit orders to create discipline before their emotions kick in.
One trader laughed as he told us, “I use limit orders to protect myself from myself.”
Q: Do experienced traders stick to one approach?
A: Almost never. Many use both within the same trade. I might enter with a limit order and exit with a market order if conditions change.
Q: What do new traders usually misunderstand?
A: One order type is not more advanced than the other, but early on, limit orders can feel like a sign of progress. Over time, people realize both are just tools, and the skill is knowing when each one fits is what takes you from a beginner to an intermediate or advanced trader.
Q: So what is the real decision behind every order choice?
A: Control. Do you want certainty and speed, or a specific price? You make the choice, then use a market or limit order to get it done.
Market orders are the fastest way in or out of a position. You place the trade and if there is liquidity it fills.
A limit order works differently. You decide the price you are willing to trade at and wait. For a buy order, that means the highest price you are willing to pay. For a sell order, it means the lowest price you are willing to accept. The order will only execute at that price or better. If the market never gets there, the trade simply does not happen.
Neither order type is better by default. They are just two of the tools out there but in the end the right choice depends on timing, order size, liquidity, and what you want to achieve. This piece is part of a series on order types. Next, the discussion turns to what investors are interested in after a trade is placed.
The traders quoted in this piece were interviewed anonymously for editorial purposes.
Whether you are new to crypto or have been in the DeFi space for years, Newton’s blog offers resources for everyone. Our learning content is designed to be beginner-friendly without skipping the deeper ideas, because we believe the future of finance should be understood.
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