market order

A market order is a type of transaction order in the cryptocurrency market that is executed immediately upon being placed by an investor. In the case of a market order, the investor expresses a desire to buy or sell a specific quantity of assets at the best available price on the market at the time of placing the order.

How Does a Market Order Work?

When an investor decides to use a market order, their priority is the fast execution of the transaction at the current market price. The broker or cryptocurrency exchange does not wait for a better price but immediately carries out the transaction according to the investor’s order.

Advantages and Disadvantages of a Market Order

A market order has its advantages and disadvantages. The main advantages include the immediate execution of the order, which is crucial especially in volatile and unpredictable market conditions. On the other hand, the main disadvantage is the lack of control over the transaction price. In a very active market, the price of a market order may differ from the expected price of the investor.

When to Use a Market Order?

Market orders are commonly used by investors in situations where there is an urgent need to execute a transaction without waiting for a better price. It is also a useful tool in situations where a cryptocurrency is characterized by high liquidity and rapidly changing prices.

A market order is one of the basic types of transaction orders in the cryptocurrency market, offering fast transaction execution at the current price. When opting for this order, the investor should be aware that despite the immediate execution, the transaction price may differ from the expected price. Therefore, it is important to carefully consider the situation and apply the appropriate investment strategy.