An order to buy or sell immediately at the current market price — instant execution, no waiting.
A market order says "fill me now at whatever price is available." It's the fastest way to enter a trade and guarantees execution — but not the price. You'll fill at the current bid (if selling) or ask (if buying), which means you pay the full spread immediately.
Market orders are ideal when you need certainty of execution more than certainty of price: news breakouts, momentum moves, exits from losing trades. They're terrible during news spikes, when spreads blow out and you can get filled 20+ pips worse than the screen showed.
Most broker platforms default to market orders. Click buy, you get filled in milliseconds at whatever the ask is right now.
Real trade example
During the Apr 2024 NFP release, a trader using a market order on EUR/USD got filled 18 pips worse than the screen showed because the spread blew out to 25 pips for 3 seconds.
Frequently asked about market order
What is a market order in trading?+
An order to buy or sell immediately at the current market price — instant execution, no waiting.
When will I see market order used in real trading?+
Default order type on every broker. When you hit "buy" or "sell" without specifying an entry price, you're using a market order.
What is the most common mistake traders make with market order?+
Using market orders during high-impact news. Spreads widen 10-20x and fills are terrible. Limit orders are far better during volatility.
What do experienced traders know about market order that beginners don't?+
Market orders on exit are fine — you want out NOW. Market orders on entry should be avoided when a limit order 2 pips better is achievable. Save every pip you can.