For a typical long-term investor buying shares on InvestNaija, these are the options I recommend: 1. Market vs. Limit ✅ Market (Buy at official market price) Your order is executed at the best available market price. Best if you simply want to buy the shares as soon as possible. This is what most beRead more
For a typical long-term investor buying shares on InvestNaija, these are the options I recommend:
1. Market vs. Limit
✅ Market (Buy at official market price)
Your order is executed at the best available market price.
Best if you simply want to buy the shares as soon as possible.
This is what most beginners use.
Limit (Buy at my set price)
You specify the maximum price you’re willing to pay.
Your order will only execute if the share price falls to that price.
If the market never reaches your price, your order remains unfilled.
Which should you choose?
Choose Market if you’re comfortable buying at the current market price.
Choose Limit only if you have a specific price target and are willing to wait.
2. Good for the Day vs. Good Till Cancelled
Good for the Day (Day Order)
Your order is valid only for that trading day.
If it isn’t executed before the market closes, it expires automatically.
Good Till Cancelled (GTC)
Your order stays active until it is executed or you manually cancel it (subject to the broker’s maximum validity period).
Which should you choose?
If you’re using Market, choose Good for the Day. Market orders are usually executed quickly during market hours, so there’s little reason to leave them open.
If you’re using Limit, choose Good Till Cancelled if you’re happy to wait until the stock reaches your target price.
For most first-time investors
The simplest combination is:
✅ Market
✅ Good for the Day
That combination buys the shares at the current market price as soon as possible.
A market order is an order to buy or sell a security immediately. This type of order guarantees that the order will be executed, but does not guarantee the execution price. A market order generally will execute at or near the current bid price (for a sell order) or ask price (for a buy order). HowevRead more
A market order is an order to buy or sell a security immediately. This type of order guarantees that the order will be executed, but does not guarantee the execution price. A market order generally will execute at or near the current bid price (for a sell order) or ask price (for a buy order). However, it is imperative for investors to remember that the last-traded price is not necessarily the price at which a market order will be executed, whereas…
A limit order is an order to buy or sell a security at a specific price or better (higher). A buy limit order used when buying can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher (this aids higher returns). Example: An investor wants to purchase shares of ABC stock for no more than 400 naira per share. The investor could submit a limit order for this amount and this order will only execute if the price of ABC stock is 400 naira or lower.
In placing a market order, there is no specific price, the order executes at the current price or near the current price, while in placing a limit order, there is usually a specific price which would be executed once that price is hit.
There is also a stop-order.
A stop order, also referred to as a stop-loss order is an order to sell a stock once the price of the stock reaches the specified price, known as the stop price.
The stop-loss order is used to protect capital and returns when there is a drop in share price.
How Do I Buy Shares on InvestNaija Using Market or Limit Order?
For a typical long-term investor buying shares on InvestNaija, these are the options I recommend: 1. Market vs. Limit ✅ Market (Buy at official market price) Your order is executed at the best available market price. Best if you simply want to buy the shares as soon as possible. This is what most beRead more
For a typical long-term investor buying shares on InvestNaija, these are the options I recommend:
See less1. Market vs. Limit
✅ Market (Buy at official market price)
Your order is executed at the best available market price.
Best if you simply want to buy the shares as soon as possible.
This is what most beginners use.
Limit (Buy at my set price)
You specify the maximum price you’re willing to pay.
Your order will only execute if the share price falls to that price.
If the market never reaches your price, your order remains unfilled.
Which should you choose?
Choose Market if you’re comfortable buying at the current market price.
Choose Limit only if you have a specific price target and are willing to wait.
2. Good for the Day vs. Good Till Cancelled
Good for the Day (Day Order)
Your order is valid only for that trading day.
If it isn’t executed before the market closes, it expires automatically.
Good Till Cancelled (GTC)
Your order stays active until it is executed or you manually cancel it (subject to the broker’s maximum validity period).
Which should you choose?
If you’re using Market, choose Good for the Day. Market orders are usually executed quickly during market hours, so there’s little reason to leave them open.
If you’re using Limit, choose Good Till Cancelled if you’re happy to wait until the stock reaches your target price.
For most first-time investors
The simplest combination is:
✅ Market
✅ Good for the Day
That combination buys the shares at the current market price as soon as possible.
What Is the Difference Between a Market Order and a Limit Order in Stock Trading?
A market order is an order to buy or sell a security immediately. This type of order guarantees that the order will be executed, but does not guarantee the execution price. A market order generally will execute at or near the current bid price (for a sell order) or ask price (for a buy order). HowevRead more
A market order is an order to buy or sell a security immediately. This type of order guarantees that the order will be executed, but does not guarantee the execution price. A market order generally will execute at or near the current bid price (for a sell order) or ask price (for a buy order). However, it is imperative for investors to remember that the last-traded price is not necessarily the price at which a market order will be executed, whereas…
A limit order is an order to buy or sell a security at a specific price or better (higher). A buy limit order used when buying can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher (this aids higher returns). Example: An investor wants to purchase shares of ABC stock for no more than 400 naira per share. The investor could submit a limit order for this amount and this order will only execute if the price of ABC stock is 400 naira or lower.
In placing a market order, there is no specific price, the order executes at the current price or near the current price, while in placing a limit order, there is usually a specific price which would be executed once that price is hit.
There is also a stop-order.
A stop order, also referred to as a stop-loss order is an order to sell a stock once the price of the stock reaches the specified price, known as the stop price.
The stop-loss order is used to protect capital and returns when there is a drop in share price.
See less