Orders & trading
What is Market order?
Hinglish mein padhein: Market order kya hota hai?
A market order buys or sells immediately at the best available price, trading certainty of execution for uncertainty of price.
In liquid stocks the price is usually close to the LTP. In illiquid stocks or fast markets, a market order can fill well away from where you expected.
SEBI's rules and many brokers add protections, but using limit orders is safer when prices are moving quickly.
Related terms
- Limit orderA limit order sets the worst price you will accept: a buy limit fills at that price or lower, a sell limit at that price or higher.
- SlippageSlippage is the difference between the price you expected and the price you actually got.
- Bid, ask and spreadThe bid is the highest price a buyer is willing to pay, the ask (offer) is the lowest price a seller will accept, and the spread is the gap between them.