A market order is an order to buy or sell an asset which is executed at the current market price.
A market order will match every orders at the opposite side of the order book until the total amount for the order has been fulfilled entirely.
Pros: Certainty of fast and full execution.
Cons: Price not warranted (floating execution price).
Example:
Currently, the order book for the pair ABC/USD on the exchange is as follow:
You want to buy (bid) 10 ABC at market price. Once your order is placed, it will automatically (and nearly instantly) be matched (and executed) against the ask-offers of the opposite side (red side).
Consequently, you will instantly buy and obtain from the book:
0.0063 ABC at $9,472.9
6.841 ABC at $9,473.0
3.1527 ABC at $9,473.2
Total: 10 ABC
On average, you have paid $9,473.1 per ABC.
Placing a market order automatically results in paying the taker fees (taker, as matched/executed immediately).
