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Order Types

Market Order

An order to buy or sell immediately at the best available price. Guarantees execution but not price.

What is a Market Order?

A market order executes immediately at the current best available price. You're guaranteed to get filled, but the price may differ from what you see on screen: especially in fast-moving or illiquid stocks.

Pros and cons

  • Pro: guaranteed execution, essential when you need to get in or out NOW
  • Con: slippage risk, especially on low-volume stocks or during volatile moments

Most day traders use market orders for exits (when speed matters) and limit orders for entries (when price matters).

Related Terms

Bid-Ask Spread

The difference between the highest price a buyer will pay (bid) and the lowest price a seller will accept (ask).

Fill

When your order is executed: 'getting filled' means your buy or sell order has been completed.

Limit Order

An order to buy or sell at a specific price or better. Only executes at the limit price or more favorable.

Slippage

The difference between the expected price and the actual fill price, usually caused by fast-moving markets or low liquidity.