Market Order
A market order executes immediately against the best available quotes. It prioritizes speed over price and can cause slippage in thin markets.
Definition
A market order is an order to buy or sell immediately at the best available prices in the order book.
What it implies
• You accept the current bid or ask and potentially multiple levels of the book if your size is larger than available depth.
• Your execution price can be worse than the top of book due to limited market depth.
Why it matters
Market orders are the most common source of slippage in thin prediction markets. They often increase effective spread relative to the quoted spread.
Common pitfalls
Using market orders in thin markets: You may sweep multiple price levels and pay much more than expected.
No price control: A market order provides speed, not price certainty.