Glossary

Market order

An order that fills immediately at the best available price. Speed is guaranteed, price is not.

A market order "takes" liquidity: it fills at the ask when buying and at the bid when selling, and you pay the spread immediately. Slippage can occur in fast moves.

It's used to get into a position right at the moment of a breakout; but in a calm market, a limit order gets a better price.

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