How a market order works
A market order tells the broker to execute immediately at the best available price. It prioritises certainty of execution over price: you will almost always get filled, but the exact price depends on the liquidity in the order book at that instant. It is the simplest order type and the right choice when getting in or out now matters more than getting a precise level.
Worked example
You send a market buy with the best offer at $50.00. If enough size sits there, you fill at $50.00. If the best offer only has part of your size, you fill the rest at the next levels, $50.02, $50.05, and your average is slightly higher. That gap is slippage, and it widens when the book is thin or the market is moving fast.
When to use a market order
Use a market order when execution certainty matters most: exiting a losing trade fast, entering a strong breakout, or trading liquid instruments where slippage is tiny. On Volity, market orders on liquid forex majors and large-cap stocks in active hours fill within a fraction of a pip of the quote. Avoid them in thin conditions or into news, where slippage spikes.
Why it matters
The market order guarantees you trade but not at what price, the exact opposite of a limit order, so using it carelessly in thin markets is how avoidable slippage adds up. Choose it when speed beats precision. Related: limit order and slippage.
Learn more in our forex trading guide.
