Market order

A market order buys or sells right away at the best available price. It guarantees that the order fills but not the price.

How Market order is calculated

A buy market order takes the lowest asking prices in the order book, one level after another, until the size is filled. A large order in a thin market walks up the book and its average fill price rises. The difference between the price you expected and the fill is slippage.

How it is read

It suits liquid assets where the spread is small and speed matters more than a cent or two.

Common mistakes

• Using it in a thin market or after hours, where the spread is wide.
• Sending one just before or after a news release.
• Forgetting a stop order becomes a market order when triggered.

What Tickfloor tested

Tickfloor has not published a backtest of a rule built only on Market order. It describes or manages something rather than giving a signal, so there is no strategy to score. It still shapes how any tested rule should be read.

Lessons that cover it

• Market, limit and stop orders, in plain English
• Order types in more depth: market, limit and stop

• Short definition in the glossary

Related concepts

• Limit order
• Bid-ask spread
• Slippage
• Liquidity
• All concepts

General information only. It doesn't consider your objectives, finances or needs. Tickfloor holds no financial services licence and never places trades.

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