Market Orders vs. Limit Orders for CRTs

Choosing the Right Order Type for Your CRT Trades

When the GigaStar Secondary Market launches on March 16, 2026, every Investor who places a trade will face a fundamental decision: should I use a market order or a limit order? The answer depends on what matters more to you in that moment — speed of execution or control over price.

This distinction is not unique to Channel Revenue Tokens (CRTs). Market orders and limit orders are the two foundational order types used across virtually all securities markets. But the way they behave on the GigaStar Secondary Market, where liquidity may be limited and bid-ask spreads may be wider than on major exchanges, makes understanding the difference especially important.

What Is a Market Order?

A market order is an instruction to buy or sell immediately at the best available price on the order book. You do not specify a price. Instead, you are telling the system: execute this trade right now, whatever the current price is.

How it works: When you submit a market buy order, it matches against the lowest-priced sell order currently on the book. When you submit a market sell order, it matches against the highest-priced buy order. If enough volume exists at that price to fill your entire order, the trade executes instantly. If not, your order will fill against successively less favorable prices until the full quantity is executed or the available volume is exhausted.

When to use a market order:

• You have reviewed the order book and are comfortable with the currently displayed prices
• Execution speed is more important to you than getting a precise price
• There is sufficient depth on the order book that your order is unlikely to move the price significantly

What to watch out for: In a market with limited liquidity, the price you actually receive from a market order can differ from the price you expected. This is called slippage. If you place a market sell order for 200 CRTs but only 50 are bid at the top price, the remaining 150 will fill at lower prices, and your average execution price will be worse than the initial bid you saw.

What Is a Limit Order?

A limit order is an instruction to buy or sell only at a specific price or better. You set the price, and the order will not execute unless the market reaches your specified level.

How it works: A limit buy order sets the maximum price you are willing to pay. If you place a limit buy at $10.00, your order will only execute at $10.00 or lower. A limit sell order sets the minimum price you are willing to accept. If you place a limit sell at $12.00, your order will only execute at $12.00 or higher. If no matching orders exist at your price, your limit order sits on the order book waiting for a counterparty.

When to use a limit order:

• You have a specific price in mind based on your own research and analysis
• You want to avoid the risk of slippage in a thin market
• You are willing to wait for the market to come to your price, even if that takes days or longer

What to watch out for: A limit order does not guarantee execution. If the market never reaches your price, your order will remain unfilled. You could miss a trading opportunity entirely if you set your limit too aggressively. Limit orders require patience and a willingness to accept that the trade may not happen.

Key Differences at a Glance

When to Use Each Order Type

The right order type depends on your specific situation and priorities. Here are some practical scenarios to consider.

Use a market order when:

• You see a price on the order book that you find acceptable and want to act before it disappears
• You need to exit a position and there are active bids you are comfortable with
• The bid-ask spread is narrow enough that you are not giving up significant value

Use a limit order when:

• You want to buy a CRT but the current ask price is higher than you are willing to pay
• You want to sell a CRT at a specific price and are prepared to wait for a buyer
• The bid-ask spread is wide and a market order would execute at an unfavorable level
• You want to place an order and walk away, knowing it will only fill at your terms

Consider avoiding market orders when:

• The order book is thin with very few orders
• The bid-ask spread is unusually wide
• You are trading a large quantity relative to the available volume

Special Considerations for CRT Markets

Trading CRTs on the GigaStar Secondary Market is different from trading stocks on a major exchange, and those differences affect how order types behave in practice.

Thinner liquidity means greater slippage risk. The GigaStar Secondary Market will have fewer participants than a public stock exchange. This means the order book may have fewer orders at any given price level. A market order that would execute cleanly on the NYSE could experience significant slippage on the Secondary Market, particularly for larger quantities.

Wider bid-ask spreads are expected. In the early period of the Secondary Market, the gap between the highest bid and lowest ask may be substantial for some CRTs. This is normal for newer markets with limited participation. In this environment, limit orders give you the ability to place your order within the spread and potentially achieve a better price than either the current bid or ask.

Order books may be sparse for some CRTs. Not every Creator's CRTs will have active buyers and sellers at all times. For less popular offerings, you may find the order book has few or no orders. In these cases, a market order may not be possible (no counterparty), and a limit order is your only option — effectively serving as a signal to the market that you are interested in trading at a certain price.

Patience is a practical necessity. In traditional stock markets, most limit orders that are reasonably priced fill within minutes or hours. On the Secondary Market, it may take days or weeks for a matching order to appear. This is not a malfunction; it is the reality of a newer, smaller market. Set your expectations accordingly.

Key Takeaways

• Market orders execute immediately at the best available price but offer no price control. They are best when you have reviewed the order book and are satisfied with current pricing.
• Limit orders execute only at your specified price or better but may not fill at all. They are best when you want to control the price and are willing to wait.
• In thin markets, limit orders are generally safer because they protect you from slippage and unfavorable execution.
• The bid-ask spread matters. Before choosing your order type, check the spread. Wide spreads favor limit orders; narrow spreads make market orders more viable.
• Partial fills can occur with both order types. Monitor your open orders and adjust as needed.
• Patience is essential. The GigaStar Secondary Market will not behave like a major stock exchange. Plan for trades that may take time to execute.

Frequently Asked Questions

How do I decide between a market order and a limit order?

If execution speed is your priority and you are comfortable with the prices currently shown on the order book, a market order may be appropriate. If you want to control the price you pay or receive and are willing to wait, a limit order gives you that control. In the early days of the Secondary Market, when liquidity may be thin, limit orders are generally the more cautious choice. Always review the order book before placing any trade to understand the available prices and volume.

Can a limit order be partially filled?

Yes. If only some of the available volume on the order book matches your limit price, your order may execute partially. For example, if you place a limit buy order for 100 CRTs at $10.00 but only 40 CRTs are available at that price, you will receive 40 CRTs and the remaining 60 will stay on the book as an open order. The unfilled portion will continue waiting until more matching volume appears, you cancel the remaining order, or the order expires.

Can I cancel an order after I place it?

Yes, you can cancel an open order that has not yet been filled. If your order has been partially filled, you can cancel the unfilled portion, but the portion that already executed cannot be reversed. It is good practice to review your open orders regularly, especially if market conditions have changed since you placed them. Cancel any orders that no longer reflect your current assessment or intentions.

This content is for educational purposes only and does not constitute investment advice. All investments involve risk, including the potential loss of your entire investment.