Market Order
A market order tries to buy or sell quickly at the best prices currently available in the market.
Start the lessonIntroduction
Choose execution, not an exact price
A market order tells your broker to buy or sell as quickly as possible at the best prices available right now. It focuses on execution first, not on locking in a specific price.
The short answer
A market buy looks for available sellers. A market sell looks for available buyers. The final price depends on the orders available when yours reaches the market.
How it works
It matches with available orders
The order book contains buy orders and sell orders at different prices.
Market buy
Seeks to match with the best available sell order. If the quantity is larger than what is available at that price, it may match at other prices too.
Market sell
Seeks to match with the best available buy order. If there are not enough buyers at that price, it may match at lower prices.
The last traded price is the price of an earlier trade. It may not be the price available when your market order is matched.
Try the example
See how the side of your order matters
Use an illustrative order book: best available seller at ₹102, best available buyer at ₹100, and last traded price at ₹101.
Illustrative order book
- Best available sell price
- ₹102
- Last traded price
- ₹101
- Best available buy price
- ₹100
Illustrative buy price used: ₹102 per share
Estimated value: ₹1,020
Assumes all 10 shares match at this one price.
This is a simplified simulation, not a live quote or trading recommendation. Real order books can change quickly and have multiple price levels and quantities. The execution price and amount are not guaranteed; an order may also be partly filled.
What to watch for
The price may change
- A market order does not set a maximum buy price or minimum sell price.
- The available price may change between placing an order and its execution.
- Large orders or low trading activity can lead to matches at several price levels.
- A market order may be partly filled or unfilled if there is not enough liquidity or the order is restricted.
- Check the order details and the broker's available order types before placing a trade.
Market order or limit order?
A market order prioritizes execution at available prices. A limit order lets you set a maximum buy price or minimum sell price, but it may not execute.
Key points
What to remember
- A market order seeks to trade at available prices.
- A market buy matches with available sell orders.
- A market sell matches with available buy orders.
- The last traded price is not a guaranteed execution price.
- A market order may fill across prices or be partly filled.
- Market orders do not set a price limit.
This lesson is for education only, not personalized financial, tax, or investment advice. Investments in securities are subject to market risks.
Test yourself
5-question quiz
Choose one answer for each question, then check your score.