Limit and At Market orders – when to use them, and how they differ

Limit and At Market refers to the condition around the price that you set on an order to buy or sell.


Summary comparison

Limit At Market

The condition you're setting

Buys – setting the highest price you’re willing to pay

Sells – setting the lowest price you’re willing to sell at

Buys – willing to pay the going market price

Sells – willing to sell at the going market price

Price entered

Your limit price in dollars and cents

Not applicable

Accepted

All the time

(we’ll queue your order when the market isn’t accepting orders; the market may subsequently reject your order depending on the market state)

During market hours only, generally 10am-4pm Sydney time

Can be amended

Yes

(unless the order’s fulfilled or if the market state doesn’t accept amendments at that time)

Not online

(and rarely over the phone because it’s often fulfilled quickly)

Can be cancelled

Yes

(unless the order’s fulfilled)

Not online

(and rarely over the phone because it’s often fulfilled quickly)


Limit orders

An order with a Limit price means:

  • For buys, the highest price you’re willing to pay for a share
  • For sells, the lowest price you’re willing to sell a share

It’s used if you want certainty about the price you could ultimately get.

Keep in mind

Your order may not trade immediately because:

  • it’s outside of market hours;
  • there may be other orders ahead of you at the same or better price than yours. The market processes orders based on “price-time priority” (those at a better price first; and, if at the same price, then by the time it was submitted);
  • there is no demand at your price at that point in time; or
  • we may have to perform additional checks on your order before we send it to market.

We also may reject Limit orders that are too far away from market prices.


“At Market” orders

An order that’s “At Market” means:

  • For buys, you’re willing to buy at the available prices offered in the market
  • For sells, you’re willing to sell at the available prices bid in the market

This type of order has no limit on the price you ultimately get. It’s used when you want to execute quickly and you’re happy to accept the going prices on the market.

Timing and price can vary

“At Market” orders are sent to market as soon as practicable in accordance with our Best Execution Statement and T&Cs. But it’s important to note that market conditions can affect the timing of your order and the price you get, for example:

  • The price you receive may be significantly different to the market price that you observed when you placed the order. This happens particularly in volatile markets when both supply and demand for shares and market prices can all change quickly.
  • Your order may take time to fully trade - longer than you anticipated. This happens particularly in illiquid stocks, when supply and demand at tradable prices can sometimes be scarce.
  • Your order may need to be checked before submission to market. It’s CommSec’s obligation as a market participant to do our part to ensure a fair and orderly market. Therefore, your order may need to be checked when it could fall outside our guidelines.

Keep in mind

  • “At Market” orders are only accepted during market hours, generally 10am-4pm Sydney time.
  • “At Market” orders cannot be amended or cancelled online once they are placed, and rarely over the phone, because they’re generally fulfilled quickly.

By clicking on the "Download the CommSec App" buttons above, you will be directed to itunes.apple.com or play.google.com. These sites are not affiliated with CommSec and may offer a different Privacy Policy and level of security.

 

Disclaimer

© Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 (CommSec) is a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945. CommSec is a Market Participant of ASX Limited and Cboe Australia Pty Limited, a Clearing Participant of ASX Clear Pty Limited and a Settlement Participant of ASX Settlement Pty Limited.

The information on this page has been prepared without taking into account your objectives, financial situation or needs. For this reason, any individual should, before acting on this information, consider the appropriateness of the information, having regards to their objectives, financial situation or needs, and, if necessary, seek appropriate professional advice.

The content on this page may not be distributed or reproduced without prior consent and any unauthorised use of the content may breach copyright provisions. CommSec does not give any representation or warranty as to the accuracy, reliability or completeness of any content on this page, including any third party sourced data, nor does it accept liability for any errors or omissions.

This site is directed and available to and for the benefit of Australian residents only.

Top