What is a market order?

A market order is defined as an order to buy or sell a security immediately at the best available current market price. This type of order prioritizes speed of execution over the price at which the order is filled. When an investor places a market order, they are effectively signaling that they want to complete the transaction without delay, accepting whatever the current market price may be at that moment.

In contrast, other types of orders involve specific conditions, such as setting a limit on the price (which does not guarantee execution), having a specified price point for execution, or triggering an event only when a particular price is reached. Market orders, however, are executed without such conditions, making them a straightforward choice for traders who want to ensure immediate execution.