Market

Execution with Market

A Market Order is executed immediately at the best available price. Unlike limit orders, market orders prioritize execution speed over price control, ensuring that trades are filled as quickly as possible.

How It Works

• A buy market order purchases the asset at the lowest available ask price.

• A sell market order sells the asset at the highest available bid price.

• Since market orders fill instantly, the execution price may vary depending on market liquidity.

When to Use a Market Order

• Immediate Execution – Ensures the order is filled instantly.

• High Liquidity Markets – Works best when there is sufficient order book depth.

• Urgent Trades – Ideal for traders prioritizing execution speed over price control.

Considerations

• No Price Guarantee – The final execution price may differ from the last traded price.

• Potential Slippage – In highly volatile markets, slippage may occur, leading to less favorable fills.

• Higher Fees – Market orders typically incur taker fees, which can be higher than maker fees associated with limit orders.

This order type is best for traders who need certainty of execution, even if it means accepting potential price fluctuations and higher fees.