What is a market order?

A market order tells the exchange to execute your trade immediately at whatever price is currently available, prioritising speed of execution over a specific price. In a liquid, large-cap stock during normal trading hours, the difference between the price you saw on screen and the price you get filled at is usually small. In a thinly traded stock, a small-cap with wide bid-ask spreads, or during high volatility like the first few minutes after market open or around a big news event, the fill price can differ noticeably from what you expected, a gap known as slippage. You use market orders when you need to get in or out of a position quickly and you’re trading a liquid stock, and you switch to a limit order when price certainty matters more than speed.