Market Order vs Limit Order: How Share Orders Work on the NGX

A market order instructs your stockbroker to buy or sell shares at whatever price is available in the NGX order book at that moment, while a limit order instructs them to trade only at the price you specify or better. The first prioritises getting the trade done; the second prioritises the price. Understanding the difference explains why the price on your contract note is sometimes not the price you saw on screen.

How an Order Reaches the NGX

Individuals do not trade on the Exchange directly. You give an instruction to a SEC-registered stockbroker, in person, by phone, through the broker's app or through a platform that places orders with a broker on your behalf. The broker enters the order into the NGX automated trading system, which holds a central order book for each security. As published by NGX, the Exchange runs a hybrid market: brokers submit orders, and appointed market makers can also submit two-sided quotes into the same book.

Orders in the book are matched on a strict hierarchy that NGX describes as price, cross and time priority. A buy order at a higher price ranks ahead of one at a lower price; among orders at the same price, the earlier one ranks first. A trade happens when a buy and a sell order can be matched under those rules.

What a Market Order Does

A market order carries no price. It is matched immediately against the resting orders on the other side of the book, starting with the most favourable and working through the queue until the full quantity is filled. Three consequences follow:

• The fill price is not known in advance. For a heavily traded share it is usually close to the last quoted price; for a thinly traded one it can be noticeably different, because there may be few resting orders near that price.
• A large order can fill at several prices as it works through the book. Your contract note then shows each fill or an average.
• If there are not enough resting orders, part of the order may go unfilled.

What a Limit Order Does

A limit order carries a price: the most you will pay when buying, or the least you will accept when selling. If the book already contains orders that satisfy your limit, it fills straight away at your price or better. If not, it rests in the book and waits. The trade-off is certainty of price against certainty of execution: a limit order may never fill if the market does not reach your price before the order expires.

Brokers let you set how long a limit order stays live. NGX's market structure lists day orders, which lapse at the close, and good-till-date orders, which rest for a period you choose. Which durations your broker offers to retail clients is a broker decision, so ask.

Price Limits on the NGX

Orders cannot be placed at any price you like. NGX applies a daily price band to equities, published in its rules as a maximum movement of ten percent from the reference price in either direction, and limit orders outside the band are rejected. NGX has been consulting on changes to its pricing methodology, so treat the current figure as something to confirm on ngxgroup.com or with your broker rather than as fixed.

Other Instructions You May See

NGX's market structure also lists order conditions such as fill-and-kill, fill-or-kill and all-or-none, and separate mechanisms for crossing and negotiated deals. These exist mainly for institutional flow. Whether a broker exposes them to individual clients varies. For most first-time investors the practical choice is simply between a market order and a limit order, and some platforms only place one type. Check your broker's or platform's terms so you know which one is being used for you.

From Execution to Settlement

When your order is matched, the trade is done but nothing has moved yet. Your broker issues a contract note showing the executed price, quantity and charges. The shares and the money then change hands through CSCS on the settlement date. As published by CSCS, the Nigerian market moved from T+3 to T+2 settlement on 28 November 2025 and to T+1 on 1 June 2026, so a trade now settles one business day after the trade date. Only after settlement do the shares appear in your CSCS account under your CHN. Settlement cycles do change, so confirm the current one with your broker.

Market and Limit Orders on the NGX: FAQs

Why did my shares fill at a different price from the one on screen?

The price on screen is the last trade or the current quote. A market order fills against the orders actually resting in the book when it arrives, which may be at different prices, especially for a thinly traded share. A limit order fills only at your price or better, which is why some investors use it when the exact price matters to them.

Can a limit order fill at a better price than my limit?

Yes. A limit is a boundary, not a target. A buy limit order fills at your price or lower, and a sell limit order at your price or higher, depending on what is available in the book when it is matched.

What happens if my limit order is not filled?

It lapses at the end of its duration, a day order at the close and a good-till-date order on the date you set. No trade takes place and no charges apply. You can place a new order on the next trading day.

Can I cancel an order after placing it?

An order can usually be amended or withdrawn while it is resting in the book and has not been matched. Once matched, it is a completed trade and cannot be cancelled. Ask your broker how to withdraw a resting order and how quickly they act on the request.

Does the order type change the fees I pay?

The Exchange, CSCS and regulatory charges are applied to executed trades, not to order types. Your broker's commission is set by the broker. Ask for the full fee schedule, and check whether any charge applies to orders that are placed but never filled.