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Market Structure

Market order

An order designed to execute quickly against the best available opposite-side prices.

Plain languagePractical exampleConnected reading
01

What is it?

An order designed to execute quickly against the best available opposite-side prices.

02

Why does it matter?

It raises execution probability but creates price uncertainty in thin or fast markets.

03

How should it be read?

Review order size, spread and visible depth before using it.

04

Common mistake

Assuming the last traded price is guaranteed for the entire order.

IN PRACTICE

A simple example

A large market order can consume several price levels and worsen the average fill.

RELATED CONCEPTS

Follow the connection

Limit orderBid-ask spreadSlippage
USE THE CONCEPT

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