GLOSSARY TERM
Market Order
A market order is an order to buy or sell an investment immediately at the best available price in the market.
What does this mean in practice?
When you place a market order, speed matters more than choosing an exact price. The order is usually completed quickly, but the final price may be a little higher or lower than the price you saw a moment earlier, especially if the market is moving fast or the investment is not very liquid.
Example
You want to buy an ETF that is trading around €100. You place a market order, and the order is filled right away at the best available price, which might be €100.02 or €99.98 depending on the market at that moment.
Why it matters
A market order is simple and easy to use, especially for widely traded investments. Still, it is helpful to understand that you are choosing immediate execution, not a guaranteed exact price.
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