> ## Documentation Index > Fetch the complete documentation index at: https://docs.predictamarkets.com/llms.txt > Use this file to discover all available pages before exploring further. # Order Types > Learn about limit orders, market orders, and order matching ## Order Types Overview Understanding order types helps you trade more effectively on Predicta. The two main types are **limit orders** and **market orders**. ## Limit Orders Limit orders let you set a specific price you're willing to pay (buy) or accept (sell). ### How Limit Orders Work * **Set Your Price**: Specify the maximum price you'll pay to buy, or the minimum you'll accept to sell * **Order Book**: Your order enters the order book at your specified price * **Matching**: The order only fills when someone matches your price * **Partial Fills**: May fill partially if only some shares are available at your price ### Advantages * **Better Prices**: You control your entry or exit price * **No Surprises**: You know exactly what you'll pay or receive * **Passive Strategy**: Set your order and wait ### Disadvantages * **May Not Fill**: If the price moves away, your order may never execute * **Patience Required**: You may need to wait for the market to come to you ### When to Use Limit Orders * You have a target price in mind and can wait for it * You want to buy at a price lower than the current market * You want to sell at a price higher than the current market Use limit orders when getting a specific price matters more than executing immediately. ## Market Orders Market orders fill immediately at the current market price. ### How Market Orders Work * **Immediate Execution**: Fills right away at the best available price * **No Price Control**: You accept whatever the market is currently offering * **Guaranteed Fill**: Always executes as long as there's liquidity ### Advantages * **Speed**: Instant execution * **Certainty**: Guaranteed to fill in active markets * **Simple**: No need to choose a price ### Disadvantages * **Price Risk**: You may pay slightly more (buying) or receive slightly less (selling) than expected * **Less Control**: You don't set the price ### When to Use Market Orders * You need to get in or out of a position immediately * The market is moving fast and you need to act now * The exact price difference doesn't matter much Use market orders when speed and certainty of execution matter more than the exact price. ## Order Matching ### How the Matching Engine Works Predicta's matching engine pairs compatible buy and sell orders: 1. **Price Compatibility**: A BUY order matches a SELL order at compatible prices 2. **Cross-Side Matching**: BUY YES can also match with BUY NO at complementary prices 3. **Price Priority**: Better-priced orders match first 4. **Time Priority**: At the same price, earlier orders match first ### The Order Book The order book shows all pending orders: * **Buy Orders**: People wanting to buy at various prices (bids) * **Sell Orders**: People wanting to sell at various prices (asks) * **Best Prices**: The highest bid and lowest ask ## Order Status ### OPEN Order placed and waiting to be matched. Funds are reserved in suspense. Can be cancelled. ### PARTIAL Some shares matched; the rest are still waiting. Funds for the filled portion have moved. You can cancel the remaining portion. ### FILLED All shares matched — trade complete. Funds moved, shares added to (buy) or removed from (sell) your portfolio. ### CANCELLED Order removed from the book. Funds returned from suspense to your available balance immediately. ## Order Strategies ### Limit Order for Entry 1. Set a limit price below the current market price 2. Wait for the price to come to you 3. Cancel if the price moves away and you no longer want to enter ### Market Order for Exit 1. You want to exit a position quickly 2. Use a market order for immediate execution at current price 3. Lock in profit or limit losses without waiting ### Layered Limit Orders 1. Place multiple limit orders at different price levels 2. Some may fill, others may not 3. Averages your entry price across fills ## Best Practices * **Limit orders**: Set realistic prices based on current market conditions; monitor and adjust if the market moves significantly * **Market orders**: Check the current price before placing — understand what you'll likely pay or receive * **Both types**: Start with small orders while learning; don't place too many open orders at once ## Order Cancellation ### When to Cancel * Price has moved away from your limit and you no longer want to fill at that price * Your trading thesis has changed * You want to replace the order at a different price ### How to Cancel 1. Go to the Orders page 2. Find your open order 3. Click **"Cancel"** 4. Funds immediately return to your available balance You can only cancel orders that haven't been filled. Once filled, trades are final. ## Next Steps Learn advanced strategies using different order types. Learn how to track and manage your orders.