# Limit/Market Order

## Market Order

A market order is a type of order used to buy or sell a market asset at the current market price. When a market order is placed in the order book, it seeks to match with the best available price from opposite side orders first. If the quantity available at that price level is exhausted, it moves on to the next price level and repeats this process until all the desired quantity is filled. Market orders are used when traders want to execute their trades quickly, without concern for the specific price they pay or receive. In the current scenario, AMM-type DEXs typically offer market order types, except for special cases where other order types may be available.  

## Limit Order

A limit order is a type of order used to buy or sell a market asset at a specific price or a better price than the current market price. While there may be other exceptional algorithms, the basic types of orders that can exist in the order book method are market and limit orders. If you place a limit order at a price that is more favorable than the current market price, the order will not be executed immediately. Instead, it will be placed on the order book, which is a collection of these orders arranged by price and side (buy or sell). The fate of a submitted limit order depends on the limit price and the current status of the order book prices; it may either be filled if the market reaches the specified price, or it may remain on the order book awaiting a match with a corresponding order from the opposite side.

### Maker vs. Taker

The size of the order book, which refers to the depth (total order quantity) and breadth of the displayed price levels, determines the extent to which users can trade at their desired price and time. In essence, it represents the level of liquidity available on the exchange. Liquidity is a critical factor for exchanges, and they undertake various efforts to ensure ample liquidity.

When a limit order is placed on the order book but not yet executed, it is considered a (Market) maker order because it adds liquidity to the market. On the other hand, a market order is a taker order since it is immediately filled and does not leave any remaining orders on the book. In order to incentivize liquidity, exchanges often provide benefits such as reduced fees for maker orders compared to taker orders. This encourages traders to participate as makers, enhancing liquidity on the platform.

### Order Option

Orders placed in the order book can incur costs due to the nature of the blockchain. To address this, PNIX DEX offers options for the lifecycle of orders.

#### TIF(Time In Force)

{% hint style="info" %}
**TIF as the Order Validity Option**

* **Good Till Time:**\
  You can specify the duration for which the order will be held, with the default option being up to 28 days.
* **Fill or Kill (FOK):**\
  If all of the submitted orders are not executed, all of them will be canceled.
* **Immediately or Cancel (IOC):**\
  The order will be partially filled immediately, and any remaining unfilled portion will be canceled.
  {% endhint %}

<figure><img src="/files/r1hYVjG8NBqJg4JunW3h" alt=""><figcaption></figcaption></figure>


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