## Understanding the mechanism: an order is a tool for instant execution

Every trader sooner or later faces the need for an urgent transaction. Market orders are designed for such situations - they allow buying and selling without delay at the current available quotes. The main difference between a market order and its limit counterpart lies in speed: the former is executed instantly, while the latter waits its turn in the order queue.

### How does a market order work this mechanism

When you place a market order to buy, the system automatically searches the order book for the best available sell offers. An order is not just a request — it is an active action that starts to be matched instantly with existing limit orders. If the volume at the first best offer is insufficient, the algorithm moves on to the second, third, and subsequent price levels.

Such a cascading process of selecting counterparties is called slippage. As a result, instead of one price, you get several, ultimately paying above the average market level. Add to this the trading commission for active participation in trading (the taker fee is always higher than the maker fee), and the costs can be significant.

### When to use this type of orders

Market orders make sense only under certain circumstances. First, when execution speed is critical — for example, when waiting for important news or needing to close a position urgently. Second, if you are willing to sacrifice optimal price for a guaranteed immediate result.

In calm market conditions, it is better to use limit orders. They are placed in the order book with the expectation of the desired price and are executed only when the conditions match. This saves on fees and protects against unexpected slippage.

### Practical output

An order is not just a tool — it is a solution that requires a conscious choice. Market orders are meant for haste, while limit orders are for patience and savings. Choose based on your priority: speed or price.