Plain-English definitions, reviewed by an independent investor
Market Order
A market order buys or sells immediately at the best available price, with no price limit.
A market order buys or sells immediately at the best available price, with no price limit.
(Executes at current bid/ask, not a set price)
Why it matters
It is the fastest, simplest way to trade when speed beats price precision.
Common confusion
In fast markets the fill price can surprise you versus the last quoted price.
Frequently Asked Questions
When use a market order?
Highly liquid names where the spread is tiny and you just want the trade done.
Risk of market order?
Slippage: you may fill worse than expected if liquidity thins.