A market order is a specific order to buy quickly or sell this thing at the best current market price! This is done on the basis of previously set order limits, but it needs this certain liquidity to be filled!
Frontier orders where orders are placed in this order book are market orders executed at the current market price. That’s when you pay your commissions as a market maker!
How you use it?
For example, if you want to create a market order where you plan to buy two Binance coins. Go to the Binance page and log in with your account and go to the BNB market you want, for example (BNB / USDT) and then go to the trading page. You’ll need to deposit on binance first.
Find the Market order tab and set it to 2 BNB – press the Buy BNB button.
After all this, you will see a confirmation message on the screen and that market order will be executed.
When market orders are executed automatically, usually right away, your market purchase order matches, making it cheaper to place a sales order in your order book. In our example, it’s 2 BNB – 5,2052 USDT each!
If you say you want to buy around 500 BNB at current market price. Then it is the cheapest available limit order for sale, which may not be enough to fill the entire market purchase order, so Binance will automatically match your next limit order, and this will continue its order book until it is complete.
This particular thing is called slip and for that reason you will pay higher prices for the charges. Because you are a market maker!
When should you use it?
Market orders are really convenient in situations where getting orders is more important than getting or reaching a certain price. Meaning that you should only use market regulations if you are willing to pay the higher prices and fees that may result from slipping. In other words, orders in this market should only be used in a hurry and wisely!
You will probably end up with a situation where you have or had a stop – limit order that has been bypassed and you need to buy or sell this as soon as possible! If you have to start trading right away or get out of trouble, then these market orders are really useful!
If you are new to cryptocurrency and are using Bitcoin to buy altcoins, for example, you need to be careful not to use market orders because you will pay much more than you should. In these cases, you should or should use limit orders!
