Limit Order vs Market Order Singapore — Which Should You Use on SGX? (2026)
A limit order lets you specify the exact price at which you buy or sell a stock, while a market order executes immediately at the best available price. Understanding which to use on SGX can significantly affect your trading costs and outcomes. This guide is for educational purposes only and is not financial advice.
Table of Contents
- What Is a Limit Order?
- What Is a Market Order?
- Key Differences: Limit vs Market
- When to Use Each Order Type on SGX
- SGX-Specific Considerations
- Other Order Types on SGX
- FAQ
What Is a Limit Order?
A limit order sets the maximum price you are willing to pay (buy limit) or the minimum price you will accept (sell limit). Your order will only execute at your specified price or better. If the market never reaches your price, the order remains unfilled until expiry.
Example: You want to buy CapitaLand Integrated Commercial Trust (CICT) at SGD 1.90 but it is currently trading at SGD 1.95. You place a buy limit order at SGD 1.90. If the price dips to SGD 1.90 or below, your order fills. If not, it remains open.
What Is a Market Order?
A market order executes immediately at whatever the best available price is. You get certainty of execution but no price guarantee. On SGX, market orders match against the current order book — the best ask for buys, the best bid for sells.
Example: You want to buy CICT right now at whatever price is available. You place a market order and it fills at the current ask price of SGD 1.95.
Key Differences: Limit vs Market
| Feature | Limit Order | Market Order |
|---|---|---|
| Price control | Yes | No |
| Execution guaranteed | No | Yes |
| Best for | Price-sensitive buyers | Urgent execution |
| Slippage risk | None | Possible |
When to Use Each Order Type on SGX
Use a limit order when:
- You are buying a less liquid stock or REIT where the bid-ask spread is wide
- You are not in a hurry and want to get a specific price
- You are doing dollar-cost averaging and want price discipline — see our DCA Singapore guide
- You suspect the stock is temporarily elevated and want to buy on a pullback
Use a market order when:
- You need immediate execution — e.g. responding to breaking news
- You are trading a highly liquid stock with a tight bid-ask spread (DBS, OCBC, Singtel)
- You are closing out a position quickly
SGX-Specific Considerations
SGX trades in board lots of 100 shares. The minimum price movement (tick size) varies by price range — for example, stocks priced between SGD 1.00 and SGD 9.99 trade in SGD 0.01 increments. Wide bid-ask spreads are common in mid- and small-cap stocks, making limit orders particularly valuable for these counters. During pre-market (8:30–8:59am) and after-hours (5:00–5:06pm), SGX uses a different matching mechanism — check your broker for order type availability in these sessions.
Other Order Types on SGX
Beyond limit and market orders, SGX brokers also offer:
- Stop orders: Trigger a market order when a price is reached (see Stop Loss Order Singapore)
- Good Till Date (GTD): Limit order valid for a specified number of days
- Fill or Kill (FOK): Must fill immediately and completely or be cancelled
- Any Part (AP): Partial fills allowed at your limit price
FAQ: Limit Order vs Market Order Singapore
Which is better — limit order or market order on SGX?
For most SGX stocks, especially mid- and small-cap stocks and S-REITs, limit orders are preferred because bid-ask spreads can be wide. Market orders are best for highly liquid blue chips when you need immediate execution.
Can limit orders expire on SGX?
Yes. By default, limit orders on SGX are “Day” orders that expire at end of session if unfilled. Some brokers offer Good Till Date (GTD) or Good Till Cancelled (GTC) options for longer-term limit orders.
What is slippage?
Slippage is the difference between the expected price of a trade and the actual price at execution. Market orders are prone to slippage in fast-moving or illiquid markets. Limit orders eliminate slippage but risk non-execution.
Do limit orders cost more to place on SGX?
Most Singapore brokers charge the same commission for limit and market orders. The real cost difference is in execution quality — limit orders can save you money by avoiding wide spreads.
What happens if my limit order is only partially filled?
Partial fills are possible with limit orders. You receive the filled portion and the remainder stays in the order book (for “Any Part” orders) or is cancelled (for “All or Nothing” orders). Most SGX orders allow partial fills by default.