What is a market order?
A market order is an immediate buy or sell order at the best available price. It is executed based on existing limit orders in the order book, which means market orders depend on market liquidity to be fulfilled.
Unlike limit orders that are placed in the order book and wait for someone to execute them, market orders are executed immediately at the current market price. Therefore, when completing a market order on the Binance platform, you will pay trading fees as a market trader.
Since market orders are executed immediately, your market order will match the best available limit order in the order book. In other words, if you create a market buy order, it will match the best limit sell orders at the current price. However, if the cheapest available limit sell order is not enough to fully satisfy the market order, your order will automatically match the next limit sell orders until it is completed. This process is called 'slippage,' and it is the reason you pay higher prices and fees with market orders compared to limit orders.
Market orders are suitable in cases where executing your request quickly is more important than obtaining a specific price. This means you should use market orders only if you are in a hurry and willing to pay higher prices and fees (due to slippage). In other words, market orders should only be used if you want to buy or sell as quickly as possible, regardless of the price and fees.
