What is a market order?
A market order is a buy or sell order that must be immediately executed by a broker. As soon as a buyer or a seller is found, the order is executed automatically.
It is important to understand that unlike limit orders, they are not placed in the order book, but are executed instantly.
In addition, this type of order cannot be canceled, unlike limit orders, which is also important to understand when you use them.
It is also important to remember that you are agreeing not only to the current market price but also to a price that may be slightly lower than the current one (this happens when there is not enough volume at the current price level to execute your order).
For example, when you send a market buy order, you will buy the selected asset until you have filled the entire volume of the order.
How does a market order work?
Suppose that you decide to create the same market order to buy 5 ETH for USDT, which is familiar to many.
To do this, you need to go to the appropriate tab on the exchange and complete a purchase order.
Due to the fact that these orders are executed automatically, your order will initially correspond to the cheapest limit sell order that is in the order book.
However, what if you want to become an Ethereum whale and buy 5000 ETH at the current market price?
For this, the cheapest orders will not be suitable, since they will not fill the entire volume of orders.
In this case, the following will happen: all exchange orders in a row will be executed, and you, as a market taker, will pay higher commissions, and the price for the cryptocurrency.
When should you use a market order?
In case the execution of the order is more important for you than the market price of the asset. You urgently need to sell or buy a certain asset, you are not afraid to overpay or lose a little. It is in this situation that market orders come to your aid.
To buy altcoins, we strongly recommend using USDT, because in this case, your commissions will be minimal relative to the commissions that you would have if you bought with LTC, ETH, or other coins.
And the most convenient way is to make such transactions on the Cryptology exchange, where you can trade with leverage up to x100 and withdraw funds with one of the lowest commissions on the market.