Market Order
A market order executes immediately at the best available price. It guarantees fill, not price.
A market order executes immediately at the best available price. It guarantees the fill, not the price, so you may get slippage in fast markets.
A market order is an instruction to buy or sell immediately at the best available price. It guarantees execution but not the price, because the fill happens at whatever the market is quoting at that instant. Market orders are the default for traders who want in or out now and accept the spread and possible slippage as the cost of immediacy.
How It Works
- Fills at the current bid (sell) or ask (buy)
- No price control - you take whatever is quoted
- Slippage risk rises in news and thin markets
Trading Tips
Use market orders when speed matters more than the exact price
For large size, consider limit orders or splitting the order to avoid moving the market
Market Order Example
Say GBP/USD spikes on surprise news and you must exit now. You hit sell market at 1.2700 and fill at 1.2696: instant exit, 4 pips of slippage accepted as the price of certainty. Waiting for a limit would have cost far more.
How Traders Use Market Order
Use market orders for exits and emergencies, limit orders for entries. Paying the spread to leave a burning trade beats negotiating with the fire. Never market-order full size into a scheduled release.
Related Terms
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