A market order is a type of order to buy or sell a financial instrument at the current market price. This order type is typically executed immediately, assuming market conditions allow for it. Market orders are commonly used by traders who want to enter or exit a position without waiting for a specific price level. It is important to note that while market orders ensure that a transaction is executed, they do not guarantee the price at which the execution will occur. In highly volatile markets, the execution price of a market order can differ from the last traded price. Therefore, traders should consider the potential for slippage and market liquidity when placing market orders.
