What is Market Order in Order Type?

A Market Order is an instruction to buy or sell a security immediately at the best available current market price. In this type of order, the client does not specify a price—the trade is executed at the prevailing rate in the market at the time of order placement.

Key characteristics of a Market Order:

• Execution is guaranteed, but
• Price is not guaranteed, as it depends on the market conditions at the time the order reaches the exchange.

Typically:

• A buy market order is executed at or near the current ask (offer) price.
• A sell market order is executed at or near the current bid price.

Market orders are ideal when the priority is speed of execution rather than getting a specific price.