Order Types
What is Market Order?
A market order is an instruction to buy or sell a security immediately at the best available current price, prioritizing speed of execution over price.
Market Order Explained
Market orders guarantee execution but not price. In highly liquid markets, the fill price will be very close to the last quoted price. In volatile or illiquid markets, there can be significant slippage between the expected price and the actual fill price.
Real-World Example
AAPL is currently bid at $179.95 and ask at $180.05. You place a market order to buy 100 shares. It executes almost instantly at $180.05 (the ask price), costing you $18,005.
Related Terms
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