A market order is one of the most common types of orders that we offer in the YAX exchange. This type of order is typically used when a trader wants to execute a trade quickly. Your market order will be executed at the best available price on the market. Specifically, your market order will be executed starting from the best available price on the opposite side of the order book , until your entire order is filled or our price range limit are triggered.
Compared to other order types that we offer, a market order can ensure that your order is executed at the fastest possible speed, but it can not guarantee the execution price of your order. You should be aware that in times of low market liquidity, the execution price of a market order may deviate significantly from the current market price, resulting in a substantial increase in your buying/selling costs.
An example of market order: Suppose that the current Order Book has only the following orders:
| Level | Price | Size |
|---|---|---|
| ASK 2 | 100 | 0.2 |
| ASK 1 | 99 | 0.1 |
If you submit a market order with a Size of 0.2 at this moment, two trades will be executed:
Trade 1: Price 100, Size = 0.1 Trade 2: Price 99, Size = 0.1
As a result, your order will be filled at an average price of 99.5 with the existing orders on the market.