A Market order is a buy or sell order executed at the best available price. The advantage of this order is that it is simple, and the trade is fully executed nearly instantaneously at the best available price at that moment. The disadvantage is that you cannot fully guarantee the exact price of the order.
Market orders are used when executing a trade that takes priority over the price at which the order will be executed. Since a market order is filled at the best price available at the time the trade is made, in fast-moving markets, the price of a cryptocurrency may be significantly different from the last price quoted before the order was entered. A market buy order can end up being split across multiple sellers. This can result in multiple prices for some market orders.
Imagine the bid-ask prices for Bitcoin are $10,000 and $10,250 with 5 Bitcoins available at the asking price, and a trader places a market order to buy 10 Bitcoins.
The first 5 Bitcoins will execute at $10,250. The next 5 Bitcoins will fill at the best-asking price, which in this example would be the next best price above the $10,250 paid for the first 5 Bitcoins.
For step-by-step instructions on placing a Market Order on Ndax, Click here.
If you are based in Canada and looking for a Canadian Bitcoin exchange, then take a look at Ndax. Ndax is an easy-to-use, beginner-friendly exchange that can give you easy access to trade Bitcoin and other cryptocurrencies like Ethereum, XRP, Litecoin, Cardano, Dogecoin, EOS, and Stellar.