Order Type
Market Order — Definition & Example
An order to buy or sell immediately at the best available current price.
Market orders prioritise execution certainty over price certainty: the order will fill, but the fill price depends on what the market is offering at that instant. Best used for highly liquid instruments where the spread is tight; worst used during volatile news events when slippage can be substantial. Most retail brokers default to market orders, but limit orders are usually better for non-urgent entries.
Example
You place a market buy order for 100 shares of AAPL when the bid is $150.00 and the ask is $150.05. Your order fills at $150.05 (the ask) immediately.
Related
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