A Market Order allows you to Buy or Sell a specified amount of a currency at the best prices available from available orders on a market. The process of executing a Market Order is as simple as entering your desired amount of digital currency you would like to Buy or Sell after which the system will automatically place orders which will match against available orders on a market's order book until you reach your desired amount. The system will automatically determine at which prices to place these orders based on what is available in the order book, i.e. it will match against lowest available selling (ASK) / highest buying (BID) prices in order to ensure that you receive/pay the best possible prices.
The ability to place a market order is useful when you want to trade immediately (and not have to wait for an order in the order book to match your specified limit price) as you will trade against the orders in the Order Book created by other willing buyer and sellers. Please bear in mind that this means that you will become an order taker and be charged the taker fee.
For Example - If the following Sell Orders are available on the ETH/BTC market:
And you wish to buy 20 ETH so you place a market BUY Order for 20 ETH. the following orders and trades will automatically be executed:
Three trades will, therefore, be placed and executed against three lowest-priced available Sell Orders and you will receive 20 ETH. The same process will apply when placing a Sell Market Order except trades will be executed against the highest available buy prices instead of the lowest sell prices.
When placing a market order, you will only need to specify the amount that you wish to Buy/Sell, the prices and net totals will be determined as the Market Order is executed based on available orders on a market. The Price input on order placement will, therefore, be defaulted to "MARKET" and fees and Net Totals can not be specified or displayed. When confirming the order, the confirmation will, however, determine the estimated Price, Fee, and Net Total you could expect to pay/receive but this estimate is subject to change based on what happens in the market as the Market Order is being executed.
PLEASE NOTE: Placing a Market Order will result in the system automatically placing orders on your behalf until your specified amount has been received, the system will, therefore, be performing trades and spending your money on your behalf. It is therefore essential that your entered amount is 100% correct as we are unable to refund or cancel any live orders or trades which resulted from placing Market Orders.
For a step-by-step tutorial on how to use the Market Order, click here.
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