A market order is an instruction to buy/sell a cryptocurrency at the best available current price, so this means that the trader does not have any interest in waiting around for better prices. This is because market orders are typically executed immediately due to their simple nature.
Market orders are incredibly important for trading as they allow traders to buy or sell quickly.
A market order is an instruction given by a trader to buy X number of cryptocurrencies at the current bid (lowest price anyone is willing to sell for) or to sell X number of cryptocurrencies at the current ask (highest price that anyone will buy at).
It’s important to remember that at any given time, there are two prices – the bid and the ask. The difference between these two prices is called the “spread” which moves up and down throughout the day as people enter their own orders in either direction. Market orders automatically get executed at whichever side of this spread exists at that moment because it doesn’t allow time for delay.
On the other hand, if you tried to place a limit order saying “I’d like 20 Facebook stocks at $38.” this would never execute because it could take hours or days for the market to hit your target price. However, if you place a market order saying “I’d like 20 Facebook stocks at $38”, even though the ask might be $36 right now, your order will get executed immediately!