# Buying Options

You can place orders to buy options before or during the [options auction](/overview/options-auction.md). Both market and limit orders are supported.

Knox Finance uses a Dutch auction system, so no matter what type of order you use, you will always pay the clearing price.

### Market vs Limit Orders

With a **market order**, you only specify the number of options you wish to buy *and* the maximum cost you are willing to pay. The amount paid by the buyer will be determined by the quantity of options being purchased and the price established by the [linear price curve](/overview/options-auction.md#primer-on-dutch-auctions).

* **market order** may only be placed during the auction (Friday 4pm - 4:30pm UTC).

With a **limit order**, you specify the number of options you wish to buy *and* the maximum price you are willing to pay per option. The amount paid by the buyer will be determined by the quantity of options being purchased, and price specified by the buyer.

* **limit order** may be placed once the auction has been initialized (Thursday 8am - Friday 4:30pm UTC)
* **limit orders** may be cancelled anytime before an auction has been finialized.

### Filled Orders

Orders are only filled if the order price is greater than or equal to the clearing price and there is sufficient liquidity to fill the order (utilization < 100%). Assuming sufficient liquidity, your order is filled at the clearing price reached at the end of the auction.

The difference between the amount paid and the cost and/or any unfilled amount is refunded to the buyer [when they withdraw from the contract](/option-buyers/withdrawing-options.md#refunds).

### Partially Filled Orders

An order may also be partially filled if there is not enough collateral to meet the amount specified. In this case the difference between remaining collateral and the amount will be used instead, any unspent funds will be refunded to the buyer [when they withdraw from the contract](/option-buyers/withdrawing-options.md#refunds).


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