TRADING GLOSSARY

Market order: instant execution at current price

A market order is an instruction to buy or sell immediately at the best available current price. It prioritizes speed of execution over price — your order fills instantly, but the exact price is not guaranteed.

How market orders work

When you place a market buy order, you buy from the lowest ask price available. When you place a market sell order, you sell to the highest bid price available. In liquid markets, the execution price is very close to the quoted price. In illiquid or fast-moving markets, you may receive a significantly different price than expected — this is called slippage.

When to use market orders

Market orders are best when getting into or out of a position quickly is more important than the exact price: emergency exits to prevent further losses, entering a fast-moving breakout where speed matters, highly liquid markets where slippage is minimal, and when price certainty matters less than execution certainty.

When to avoid market orders

Illiquid markets where the spread is wide. Pre-market or after-hours sessions with thin order books. Stocks experiencing extreme volatility or halted trading (the resumption can gap significantly). Large orders that exceed the available liquidity at the best price, causing “walking the book” and progressively worse fills.

For controlled entries, AskTrade recommends limit orders at the levels identified in research reports.

Disclaimer: This is for educational purposes only and does not constitute financial advice. Trading involves significant risk of loss.

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AskTrade analyses are AI-generated and do not constitute financial advice.