Market order: an order that prioritizes execution speed
A market order is executed as quickly as possible at the prices currently available in the order book. It is suitable when speed is important, but the actual execution price, slippage, and fees may be uncertain.
What is a market order?
A market order is an instruction to buy or sell immediately at the best available prices currently in the order book, without specifying an execution price in advance. A buy order is matched first with the lowest ask price, while a sell order seeks the corresponding best bid price. It emphasizes rapid execution but does not guarantee that the final average execution price will equal the price shown when the order was placed.
How are orders matched?
A market order relies on existing limit orders and liquidity in the order book. If the quantity available at the best price is insufficient, the unfilled portion may continue to be matched with the next available quotes. As a result, large orders may be executed across multiple price levels. Whether the order can be fully filled and when matching stops also depend on available liquidity and platform rules.
Slippage and fees
The difference between the actual average execution price and the price seen when the order was placed is called slippage. It is more pronounced when liquidity is insufficient or prices are moving rapidly. Market orders typically consume existing liquidity and incur taker fees; a limit order may also be considered a taker order if it is immediately matched with existing orders. Final fees should be determined according to the platform’s maker and taker rules.
When to consider using one
A market order is more suitable when execution speed is more important than price precision, such as when a quick exit is needed during a period of sharp market volatility. If you want to buy or sell only at a specified price and are willing to wait for the market to reach that price, a limit order is more appropriate. When choosing, consider execution speed, slippage, and fees together.
Original Tutorial
https://www.binance.com/zh-CN/academy/glossary/market-order
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