Market Order
A market order is the simplest type of trading instruction, referring to its structure rather than the complexity or risk using it. It tells a broker or trading platform to buy or sell a security right away at the best available price in the market. Because it prioritises speed over price, a market order usually guarantees execution but not the exact price paid or received. Prices can move slightly between the time the order is placed and filled, especially in fast-moving or less liquid markets.
Why market orders matter to investors
Understanding market orders can help investors:
● Understand how trades are executed in real time
● Recognise when price certainty may be secondary to execution speed
● Manage expectations in volatile markets
● Differentiate market orders from limit orders, which can offer greater price control
Market orders may be appropriate when timely execution is prioritised over achieving a specific price, but investors should be aware that execution prices can vary.