What Is Market Order? Meaning & Example
Definition
A market order buys or sells immediately at the best available price. It prioritizes speed over price, so the final price may differ slightly from the last quote.
Related terms
A limit order sets the maximum price you will pay to buy or the minimum you will accept to sell. It gives price control but may not fill if the market never reaches your price.
SlippageSlippage is the difference between the price you expected and the price your order actually filled at. It is more common in fast or thin markets.
SpreadThe spread is the difference between the highest price a buyer will pay (the bid) and the lowest price a seller will accept (the ask). Narrow spreads usually mean lower trading costs.
What is Market Order?
A market order buys or sells immediately at the best available price. It prioritizes speed over price, so the final price may differ slightly from the last quote.
Can you give an example of Market Order?
Placing a market order to buy 50 shares fills right away at whatever the current asking price is.