Technical Definition
Market order
A market order instructs a trading venue to buy or sell immediately using the best available prices.
By Crypto University Editorial
Limit orderOrder bookSlippage
✦ Key Insight
Market orders are simple and fast, but volatile or illiquid markets can produce unexpected execution prices.
✕ Common Misconceptions
A displayed price is not guaranteed. Large market orders can experience significant slippage.
Detailed Explanation
Market orders prioritize execution rather than a specific price. Your trade may be filled across several prices if there is not enough liquidity at the best quote.
In Practice
“You market-buy 2 ETH, but only 1 ETH is available at the best ask. The rest may fill at higher prices.”
Dig Deeper
Liquidity
Liquidity describes how easily an asset can be bought or sold in meaningful size without causing a large change in price.
Order book
An order book is a list of open buy and sell orders arranged by price on a trading venue.
Slippage
Slippage is the difference between an expected trade price and the actual execution price.
Limit order
A limit order instructs a trading venue to buy or sell only at a specified price or better.