A market order is a type of instruction given to a broker to buy or sell a stock or other type of investment at the best available current price. These orders are typically executed almost immediately because they do not contain any restrictions on the buy/sell price or the timeframe in which the order can be executed.
When an investor places a market order, they prioritize speed and immediate execution over price because it doesn’t guarantee the price at which the investment will be bought or sold; rather, it guarantees the order will be conducted as speedily as possible. However, the market price can fluctuate in the time between placing the order and its final execution, especially in volatile markets where prices can change rapidly.
These orders are popular among individual investors who want a quick and certain execution but can risk getting a slight price variation from the last-traded price. Ultimately, market orders are all about order fulfilment in the quickest time rather than getting the best price.
