How does Market order work?

Market orders are transactions meant to execute as quickly as possible at the present or market price.

A market order deals with the execution of the order; the price of the asset is secondary to the speed of completing the trade. Limit orders deal primarily with the price; if the asset’s value is currently resting outside of the parameters set in the limit order, the transaction does not occur.

When the layperson imagines a typical trade, he thinks of market orders. These orders are the most basic buy and sell trades.

Even though market orders offer a greater likelihood of a trade being executed, there is no guarantee that the trade will actually go through. All market transactions are subject to the availability of given asset and can vary significantly based on the timing and size of the order and the liquidity of the asset.

All orders are processed within present priority guidelines. Whenever a market order is placed, there is always the threat of market fluctuations occurring between the time the order is placed and the time the trade is executed. This is especially a concern for larger orders, which take longer to fill and, if large enough, can actually move the market on their own.