Market Order/Market Buy/Market Sell

What Is a Market Order/Market Buy/Market Sell?

Market orders are filled as buyers and sellers are willing to trade.

Market order requests are usually made through a broker on behalf of investors.

Market orders are considered the most popular form of orders.

They are also said to be very cost effective.

Certain brokerages have a buy/sell button which facilitates market orders.

If a trader is willing to execute a market order that means he or she is agreeing to sell at the bid price or purchase at the asking price.

Market orders are very different orders compared with limit orders. The main difference between both is that limit orders are used by cryptocurrency traders to buy crypto assets when a certain price is reached. 

This is a very useful strategy especially if cryptocurrency traders expect prices to drop.

These are often used if traders want to open a long cryptocurrency position.

This is because a tighter spread reflects greater liquidity and a more competitive market.

Once the transaction is completed, one can say the “order has been filled”.

A disadvantage of market orders is that it can adversely affect more price sensitive traders.

For example, traders who agree to a higher price may see the market order being filled as the exchange is trying to match the best possible price.