What is the difference between a market order and a limit order?

A market order prioritises speed and guarantees execution (assuming there’s a counterparty) but not price, filling at whatever the best available price is the moment it hits the exchange. A limit order prioritises price and guarantees you won’t pay more (or accept less) than your set level, but doesn’t guarantee execution at all, since the market may never reach that price. In a fast-moving stock, a market order might fill several rupees away from the last traded price you saw, while a limit order at that same last traded price might sit unfilled if the stock gaps past it. You use market orders in highly liquid stocks when timing matters more than the exact price, and limit orders when you have a specific level you want and you’re comfortable potentially missing the trade if it doesn’t get there.