What is the meaning of a market order?

A market order is an instruction to buy or sell an asset immediately at the best available price. It focuses on speed, making it ideal for quick execution, though it carries risks like slippage.

How does a market order work?

Market orders match with existing limit orders in the order book. A market buy order matches the lowest ask price, while a market sell order matches the highest bid price, ensuring fast execution.

When should you use a market order?

Use market orders in highly liquid markets when speed is essential, such as during strong price movements. For volatile or low-liquidity assets, limit orders may be safer to avoid unfavorable prices.