A market order is a type of order in futures trading that is executed based on the current market price. When you place a market order, you will buy or sell assets at the prevailing market price. Market orders are typically executed the fastest among order types.
- Using the BTC/USDT trading pair as an example, let's assume the current market price for BTC/USDT is 50,000 USDT. If you want to buy 1 BTC at the market price, you can place a market buy order. The trade system will immediately execute the order at the best available market price. For instance, if the best available market price is 50,100 USDT, your market buy order will be executed at that price, and you will buy 1 BTC.
- Similarly, if you want to sell 1 BTC at the market price, you can place a market sell order. The trade system will immediately execute the order at the best available market price. For instance, if the best available market price is 49,900 USDT, your market sell order will be executed at that price, and you will sell 1 BTC.
Market orders are known for their quick execution as they are based on the current market price and do not require waiting for a specific price level. However, it's important to note that due to market volatility, the execution price of a market order may have slight deviations.
In summary, a market order is a type of order in contract trading that is executed based on the current market price. It allows for immediate buying or selling of assets at the best available market price.