There is a lot of talk right now about trading.

What is the price of Bitcoin?
What point is it trading at?
What price do you expect it to trade at tomorrow?

A lot more stuff along that line. But then do you really understand the type of orders it takes to make a trade. Basically there are three orders, the market order, the limit order and the stop-limit order. Right now we will be talking about the Market Order.

A market order is an order to quickly buy or sell a coin 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. When you use a market order to buy or sell, it carries out your action instantly at the price at which the coin is trading as at the time you placed it. For instance, if you want to buy 1 Bitcoin and let's say it is trading at $5,000. If you place a market order, it will sell you the 1 Bitcoin at exactly that price.

The biggest benefits of a market order is that it is used to get carry out snap buys or sells. It is used if you want to get it fast at exactly the current market price. You get it immediately without waiting, as is the case when using the other order types, it buys or sells “right now.”

Many would however advise you against using Market orders because it leads to slippage. A “slippage" is where you get a slightly higher price with a buy market order or slightly lower price with a sell market order if there aren’t enough limit orders to fill the market order at a given price. When the market is very volatile, slippages can increase to quite substantial amounts. The Market order is the easiest trade to carry out, but it involves extra fees. When you buy or sell using a market order, you’ll buy or sell a cryptocurrency at the market price plus an immediate fee. So you want to be careful when using this.