A purchase or sale of a cryptocurrency on an exchange at the current best available price.
Market orders are filled as buyers and sellers are willing to trade.
This is in contrast with limit orders at which a cryptocurrency is sold only at a specified price.
Market order requests are usually made through a broker on behalf of investors.
Market orders are considered the most popular form of orders.
This is because they are highly liquid.
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.
It may be useful for cryptocurrency traders to look at bid-offer spreads before entering a market order.
This is because a tighter spread reflects greater liquidity and a more competitive market.
Market orders are also instant. Once it is executed, a cryptocurrency such as Bitcoin is immediately sold or bought at the specific price.
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.