A market order is an order to quickly buy or sell at the best available current price. It needs liquidity to be filled, meaning that it is executed based on the limit orders that were previously placed on the order book.
Unlike limit orders, where orders are placed on the order book, market orders are executed instantly at the current market price
How to use it?
Let’s say you want to create a market order to buy 0.02 BTC. After logging in to your VCC account, choose the BTC market you (i.e., BTC/USDT) and go to the trading page. Then, find the Market order tab, set the amount to 0.02 BTC, and click the Buy BTC button.
After that, you will see a confirmation message on the screen, and your market order will be executed.
Since market orders are executed real time, your market buy order will match the cheapest limit sell order available on the order book, in this example 0.02 BTC for 19,183.42 USDT each.
But let’s say you want to buy 10 BTC at the current market price. The cheapest limit sell order available will not be sufficient to fill your entire market buy order, so your order will automatically match the following limit sell orders, working its way up the order book until it is completed. This is called slippage and is the reason why you pay higher prices and higher fees.