A market order is a type of order in spot trading where you buy or sell cryptocurrencies at the current market price. When you place a market buy order, you will immediately purchase the cryptocurrencies at the current market price. Similarly, when you place a market sell order, you will immediately sell cryptocurrencies at the current market price. Market orders are typically used when you need to buy or sell immediately.
- For example, let's say the current market price of Bitcoin is $10,000 per Bitcoin. If you place a market buy order to purchase 1 Bitcoin, you will immediately buy 1 Bitcoin at the current market price of $10,000. Likewise, if you place a market sell order to sell 2 Bitcoins, you will immediately sell 2 Bitcoins at the current market price of $10,000.
Please note that due to market fluctuations, the actual execution price of a market order may deviate slightly from the displayed market price. Therefore, when executing market orders, it is important to consider the liquidity and order book depth of the market to ensure you get a trade execution as close as possible to the expected price.