What is a "market order" in trading?

A "market order" refers to an instruction given to buy or sell a security immediately at the current market price. This type of order is executed as quickly as possible and at the best available price in the market at the time the order reaches the exchange.

The primary characteristic of a market order is that it prioritizes speed of execution over price certainty. Traders utilize market orders when they want immediate transaction fulfillment, which is especially useful in fast-moving markets where prices can change rapidly. This approach ensures that the order is filled, although the exact execution price can vary based on current market conditions.

The other choices present concepts that do not capture the essence of a market order. For example, an instruction to buy or sell at a set price relates more to a limit order, where the trader specifies the price at which they want to execute the trade. A request to delay the transaction does not align with the immediate nature of market orders, and ordering future stocks typically refers to options or futures contracts, which is distinct from the immediate buy or sell actions associated with market orders.