A trade can be made or broken by choosing the appropriate order type, such as a market order or limit order. It is not merely a technological aspect. How a trade is executed at your preferred entry point, the amount of slippage you encounter, and the real-time stability of your stop loss, take profit, and risk-reward ratio are all factors. Making the right decision becomes much more important when margin and leverage are included.

1. Market Order: Price Is Secondary to Speed

When you receive a market order, you are instructed to buy or sell right away at the best price. Execution is virtually guaranteed, making it ideal for quick breakouts or time-sensitive actions. But you give up control over the cost of execution. You may encounter slippage in a market that is illiquid or volatile, which occurs when the executed price deviates from your initial expectation.

Use market orders when: 

Quick execution is required.

You can not miss your entry because you are utilizing a narrow margin.

High levels of liquidity are found in blue-chip stocks and key FX pairings.

Steer clear of market orders if 

You are aiming for a certain entry position.

Your risk-reward ratio may suffer if you make mistakes.

Markets are either news-driven or erratic.