Definition
A market order prioritizes speed of execution over price. It guarantees execution but not the price. In fast-moving or illiquid markets, the execution price may differ significantly from the last quoted price (slippage).
Example
If you place a market order to buy 100 shares of a stock currently at $50, you'll get the shares immediately but might pay $50.05 or $49.95 depending on available sellers.
FAQ
What is Market Order?
An order to buy or sell a security immediately at the best available price.
Why is Market Order important?
Market Order helps investors evaluate order types and make more informed decisions.