Placing a market order exposes the buyer to more risk than placing a limit order.

Question

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Placing a market order means that the buyer is willing to buy or sell at the current market price, without specifying a price limit. This exposes the buyer to the risk of the market price immediately changing before the order is fulfilled. In contrast, placing a limit order means that the buyer sets a price limit for the transaction, reducing the risk of the price changing before the order is fulfilled.

Placing a Market Order Exposes the Buyer to More Risk