Trading
Market Order
A market order tells the broker to fill the trade right now at whatever price the market offers. It almost always executes quickly, which is its main advantage.
The tradeoff is price uncertainty. In fast-moving or thinly traded markets, the fill can come at a worse price than expected, an effect called slippage. This contrasts with a limit order, which sets a maximum or minimum acceptable price.
Market orders suit situations where getting the trade done matters more than the exact price, such as in highly liquid stocks with narrow bid-ask spreads.
Example
A market order to buy 100 shares fills instantly at whatever the current asking price happens to be.
Market Order — FAQ
What is Market Order?
A market order is an instruction to buy or sell a security immediately at the best available current price, prioritizing speed of execution over price certainty.
Can you give an example of Market Order?
A market order to buy 100 shares fills instantly at whatever the current asking price happens to be.
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