Order types
Market order
A market order fills immediately at the best available price. You choose speed over an exact price.
A market order fills immediately at the best available price. You choose speed over an exact price.
The market order is the simplest: it says "buy (or sell) now, at the market price." On a liquid asset it almost always fills, because it takes whatever price is on offer.
Its drawback is slippage: on a fast-moving or illiquid market, the price you get can differ from the one shown the instant you click. You use it when getting in or out quickly matters more than squeezing a few cents.
You want out of a position right now because the market is turning. A market order gets you out instantly, even if it fills at $49.95 rather than the $50.00 shown a second earlier.
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