Everyone! Sean Here Warrior Trading and today we're going to go over what a market order is. And a market order is probably the simplest order you can place because it doesn't require you to specify a price like a limit or a stop order. When you place a market order, you are saying I'm willing to buy or sell it whatever the market price is. but how do you know what the market price is? Well, looking down here at the level Tutor, you'll see that we have our bid on the left side and we have our Ask on the right side.

Now the bed represents all the buyers and the Ask represents all the sellers and the difference between those two is called the spread. So when we place a market order to buy, you're going to buy at the ask price Since that is the lowest price, sellers are willing to sell shares. that and vice versa for a sell order. When you place a sell market order, you are going to sell at the bid price since that's since that's the highest price, buyers are willing to buy shares.

That one thing to keep in mind is market orders are instantly executed. so you want to see your order on the level two, but it will show up on time and sales which is this middle window here. So now market orders can be easy to place, but they can be very dangerous because you have zero control on what prices you get filled out. and when a stock is moving quickly, you can get filled at ten, twenty cents or even more away from where you thought you should have gotten filled That, especially if the stock has a wide spread.

That's why market orders should really only be. Use an emergency with marketable limit orders. use as your main order type for entering trades. Emergency would be if you get into a trade and it instantly goes against you and you have to bail out quickly.

That is really the only time I've use a market order, so that's market orders. They're fairly simple if you have any questions about and let us know in the comments below. Alright guys, see you next time! Oh hey, I didn't see you there while I was just working on the dream board for my next home run trade. Hopefully it comes soon.

Until then, make sure you subscribe to get email alerts anytime I Go live or upload new videos. Until then, Happy surfing.