A market order is the simplest of the order types. With this order type, you buy or sell a securities at the best available price given in the market at the time the order is sent to the exchange for execution.

If you buy a stock using a market order, you will pay the market’s ask price when you submit your order to the exchange. On the other hand, if you sell a stock using a market order, you will receive the market’s bid price when the order is placed and executed.

Important to know:

• At times, typically with highly traded securities, the price paid (ask) or received (bid) may be different from the last price quoted before the order was placed
• If your market order involves buying/selling to different participants, your trade may be filled at more than one price
• If there are other pending orders that were placed in the exchange before you placed yours, it may take time for your order to process (depending on liquidity of the security and volumes of your trade)