Market Order

A market order is a type of trading order that executes immediately at the best available price in the market. When you place a market order, you're essentially telling the exchange that speed is your top priority—you want to buy or sell the asset right away, no matter what the current price is. This makes market orders ideal for situations where you need to enter or exit a position quickly, especially in fast-moving markets where prices can change in an instant. However, because market orders don’t give you control over the exact price at which the trade is executed, there is a risk of slippage.

Slippage occurs when the price at which your market order is filled differs from the price you expected. This can happen in volatile markets where prices are moving rapidly, or in markets with low liquidity where there may not be enough buyers or sellers at the current price to fill your order. While slippage can sometimes be minimal, it can also lead to less favorable trade outcomes, especially if the market is moving against your position. Despite this risk, many traders prefer market orders for their speed and simplicity.