market order

A market order in finance is an instruction to buy or sell a security or commodity immediately at the best available price. This type of order guarantees that a trade will be executed, but it does not guarantee a specific price. The actual price you receive, known as the execution or fill price, might differ from the price at the time the order was placed due to market fluctuations, a phenomenon called slippage.12

Market orders are best used when speed is a priority and the exact execution price is less critical, especially for stocks with high trading volume and liquidity, which tend to have smaller price spreads and less slippage. They are a fundamental tool for investors and traders, particularly those active in short-term market movements.2