A limit order and a market order are two distinct types of orders used in stock trading that differ in their execution methods.

A market order is an instruction to buy or sell a security at the best available price in the market. When placing a market order, the priority is on executing the trade quickly, without specifying a specific price. As a result, market orders are typically filled almost immediately, as they match against the current market's best available prices. However, the execution price may vary from the quoted price at the time of placing the order due to market fluctuations.

In contrast, a limit order is an instruction to buy or sell a security at a specific price or better. When placing a limit order, traders set a maximum price they are willing to pay (in the case of a buy limit order) or a minimum price they want to receive (in the case of a sell limit order). The limit order is then placed in the market's order book and will only be executed if the market reaches the specified price or better. The trade may not be executed immediately if the market doesn't reach the limit price, and there is a possibility of the order remaining unfilled.

The key distinction between a limit order and a market order lies in the price execution. Market orders prioritize speed of execution, while limit orders prioritize a specific price level. Traders who want more control over the execution price may prefer limit orders, whereas those seeking immediate execution at the prevailing market price may opt for market orders.