Yep, another way to think of it is that if everyone was using limit orders (no one using market orders) the price would never move. Everyone would just be sat there on the bid (buyers) or the offer (sellers) looking at each other. It takes someone to trade at market (to buy from the offer or sell to the bid) to move the price. When you're trying to exit a position you can either use a limit order and hope someones market order fills you, or you can use a market order to buy/sell from someones limit order to exit immediately, to cost of this is getting a worse price.
===> PLEASE IGNORE THE NOTES. I'm lazy when I have to write messes up in my brain.
===> PLEASE IGNORE THE NOTES. I'm lazy when I have to write messes up in my brain.