An order to buy or sell a security immediately at the best available current price, guaranteeing execution but not the price.
Market orders are the simplest and fastest way to execute a trade. When you place a market buy order, you pay the lowest ask price available. When you place a market sell order, you receive the highest bid price available. The risk is slippage, where the execution price differs from the last quoted price, particularly in fast-moving or illiquid markets. For actively traded stocks like Apple or Microsoft, slippage is negligible. For thinly traded small-cap stocks or during after-hours trading, market orders can result in significantly worse prices than expected. Most financial advisors recommend using limit orders instead for larger positions.