A market order trades immediately at the best price currently available. A limit order trades only when the market reaches the price you set. In short, a market order gives you speed, and a limit order gives you price control.
The choice also changes what you pay. On KyberSwap, a market swap means you send the transaction and pay the gas. With a limit order, you sign the order and the taker pays the gas to settle it.
Limit Order vs Market Order at a Glance
Here is how the two order types compare side by side.
| Market order | Limit order | |
|---|---|---|
| Executes | Immediately | Only when the market reaches your price |
| Price | Current market price, which can slip | The price you set |
| Fill guarantee | Fills if liquidity is available | May fill partly or not at all |
| Main risk | Slippage and price impact | Missing the move if your price is never reached |
| Your role | Usually taker | Usually maker |
| Best for | Trading now | Trading at a target price |
How Do Market Orders and Limit Orders Work?
What Is a Market Order?
A market order is an instruction to buy or sell right now at the best price available. On a centralized exchange, it fills against existing orders in the order book. On a DEX, the same idea is a swap that trades against liquidity pools.
On KyberSwap, a market order is a Swap. The KyberSwap Aggregator splits and optimizes routes across 650+ liquidity sources to find the best available rate. You send one transaction and receive the output token when it confirms.
What Is a Limit Order?
A limit order is an instruction to buy or sell only at a price you choose. It waits until the market reaches that price and someone takes the other side.
The person who places a limit order is the maker. The person who fills it is the taker. For a closer look, see Maker vs Taker on a DEX: How They Work in Limit Orders.
On KyberSwap, you create a Limit Order by signing it, not by sending a transaction. Your tokens stay in your wallet until the order settles. Open orders can be filled by anyone, including the KyberSwap Aggregator, so swaps via the Aggregator will also be routed through active limit orders when the rate is competitive.
How Much Does a Market Order Cost Compared With a Limit Order?
A market order usually costs more per trade than a limit order, because the person who takes liquidity pays the execution costs. How that plays out depends on whether you trade on a centralized exchange or a DEX.
On a Centralized Exchange
Many centralized exchanges charge separate maker and taker fees. A market order takes liquidity from the order book, so it pays the taker fee. A limit order that rests on the book adds liquidity, so it usually pays the maker fee, which is often lower.
Gas is not part of the cost here, because trades happen inside the exchange.
On KyberSwap
On a DEX, each action that settles on-chain needs gas. The difference between the two order types is who sends that transaction. For the full Limit Order breakdown, see Do DEX Limit Orders Cost Gas?
| Cost | Market order (Swap) | Limit Order (as the maker) |
|---|---|---|
| Platform fee | None for swaps made directly on KyberSwap.com | None. The taker pays the taker fee |
| Gas to place the trade | You pay gas for the swap transaction | Signing the order does not require gas |
| Gas to settle the trade | Included in your swap transaction | The taker pays the gas fee |
| Token approval | Gas for a standard Approve, unless the token supports a gasless Permit | Gas the first time per token |
| Wrapping a native token | Not needed | Gas, only when selling a native token such as ETH |
| Price impact and slippage | Applies, depending on pool liquidity | None |
| Cancelling | Nothing to cancel | Gasless Cancel is free. Hard Cancel requires gas |
For Swap, positive slippage collection applies to certain trades. For a Limit Order, the taker fee ranges from 0.01% to 1%, depending on the volatility level of the tokens, and it is paid by the taker. Gasless Cancel can take up to 5 minutes if the order was recently shared with a taker.
So for a trade you are willing to wait for, a Limit Order removes two per-trade costs of a market swap on KyberSwap: the gas to execute it and the slippage.
What Are the Risks of Each Order Type?
A market order risks a worse price. A limit order risks no trade at all.
Market Order Risks
Price impact. A large order compared with the available liquidity moves the price against you. A higher price impact results in a worse swap rate.
Slippage. The price can change between your quote and execution. Set a Max Slippage so the trade is reverted if the final price falls outside your tolerance.
MEV. A higher slippage tolerance adds risk from frontrunning. On Ethereum, you can use an MEV-protected RPC to protect transactions against MEV strategies.
To go deeper, see What Is Slippage? and What Is Price Impact?
Limit Order Risks
It may not fill. A limit order fills only if the market reaches your price. Takers also weigh the order’s size, gas fees and their own margin before filling it.
It may fill partly. Some takers may fill only part of your order and look for better opportunities elsewhere.
Small orders on Ethereum. Because the taker pays the gas to settle, small orders on Ethereum are unlikely to fill unless the price moves enough to cover taker gas costs.
No price improvement. A KyberSwap Limit Order locks in a fixed rate when you sign it, so it fills at that rate even if the market moves further in your favor. To capture a better price, cancel and create a new order.
Your balance must stay available. Your tokens stay in your wallet until settlement. If your balance falls short at that point, the order fills only up to the available amount.
When Should You Use a Market Order or a Limit Order?
Use a market order when getting the trade done matters more than the exact price. Use a limit order when the price matters more than the timing.
For more trading scenarios, see Limit Orders vs Market Swaps: When to Use Each in DeFi.
Use a Market Order When…
- You need to act now. News breaks, a position needs closing, or a token is moving and waiting could cost more than slippage.
- The market is liquid. In a deep pool, price impact stays small, so the cost of trading immediately is low.
- You are moving between positions quickly. A swap completes in one transaction, with no order to monitor or cancel.
Use a Limit Order When…
- You have a target price. Buy a dip or take profit at a level you choose, without watching the chart.
- A market swap shows high price impact. A limit order lets you trade at your price instead of accepting a worse rate.
- You want to cut gas on frequent trades. Placing the order and settling it cost you no gas.
- You expect to adjust your price. Cancel with Gasless Cancel and create a new order, without paying gas each time.
Quick Guide
| Situation | Better fit |
|---|---|
| Trade right now | Market order |
| Buy or sell at a specific price | Limit order |
| A market swap shows high price impact | Limit order |
| Exit fast during a sharp move | Market order |
| Adjust your target often | Limit order with Gasless Cancel |
Frequently Asked Questions
Is a Limit Order Cheaper Than a Market Order?
Usually, yes. On a centralized exchange, a resting limit order often pays the lower maker fee. On KyberSwap, signing a Limit Order does not require gas, and the taker pays the gas and taker fee to settle it.
Can a Limit Order Fill at a Better Price Than I Set?
No, not on KyberSwap. A KyberSwap Limit Order locks in a fixed rate when you sign it, so it fills at that rate even if the market moves further in your favor.
What Happens if My Limit Order Never Fills?
It stays open until it expires or you cancel it. When you create the order, you choose an expiry, and the order cancels automatically if it is unfilled by then.
Can Someone’s Market Swap Fill My Limit Order?
Yes. Limit Orders are a liquidity source on the KyberSwap Aggregator, so swaps via the Aggregator will also be routed through active limit orders when the rate is competitive.
Is a Market Order the Same as a Swap?
On a DEX, yes in practice. A swap trades immediately at the best available rate from liquidity pools, which is how a market order works.
Use Both: Market Orders for Now, Limit Orders for Later
Most traders do not have to pick one order type for good. Use a market order when the trade has to happen now and the market is liquid enough to keep slippage small. Use a limit order for trades that can wait for your price.
On KyberSwap, both sit in the same interface. Swap gives you the best available rate across 650+ liquidity sources with no platform fee on KyberSwap.com. Limit Order lets you trade at the price you choose.
To try both, open KyberSwap, connect your wallet, and switch between the Swap and Limit Order tabs on the Swap page.
