Market Order

A type of buy or sell order that relies on what is available in the market.

A market order is the instruction from traders to brokers in which what is to be bought or sold depends on what is available in the market or the order book. This way, the trader is not offering to buy or sell something at a preferred price, but at the market price. In the same way, the quantity of assets to be traded have also been determined by the order book instead of the trader.

Market orders are useful in that they save time and any complicated decision-making. Even so, expert traders only use them rarely or when they think that the market is particularly favorable.