Market Order
Order TypesAn order to buy or sell immediately at the best available price. Market orders guarantee execution but not a specific price.
What Is a Market Order?
A market order is an instruction to buy or sell a Currency Pair immediately at the current best available price. When you place a buy market order, you are filled at the current Ask Price. When you place a sell market order, you are filled at the current Bid Price. Market orders prioritize speed of execution over price.
When to Use Market Orders
Market orders are best when you want to enter or exit a position right now. They are commonly used during breakouts when price is moving quickly and you do not want to miss the move, or when closing a losing position where every pip counts. Most traders use market orders for at least some of their entries.
Market Order Risks
Because market orders fill at the best available price (not a guaranteed price), you may experience Slippage during fast-moving or low-liquidity conditions. If EUR/USD is at 1.0850 when you click buy, you might actually be filled at 1.0851 or 1.0852 if the market moved during the milliseconds of order processing. During major news events, slippage can be significantly larger. If price certainty matters more than speed, consider a Limit Order instead.
Related Terms
Limit Order
An order to buy below or sell above the current market price. Limit orders guarantee price but not execution.
Stop Order
An order to buy above or sell below the current market price. Stop orders become market orders once the trigger price is reached.
Slippage
The difference between the expected fill price and the actual fill price of an order. Slippage occurs when market conditions change during order execution.
Execution Speed
The time between submitting an order and receiving a fill confirmation. Measured in milliseconds. Faster execution reduces slippage and requotes.