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What Is Market Order and How to Place It

Binance
2021-07-14 04:40

What is a Market Order?

A market order is executed at the current market price as quickly as possible when a user places the order.
When placing a market order, you can either select [Amount] or [Total] to buy or sell.
For example, [Amount] is recommended when you want to buy or sell BTC with a certain quantity. However, if you just want to buy BTC with a certain amount of funds, such as 10,000 USDT, placing a market order with [Total] is a better option.
In general, you can use both functions to place your buy and sell orders. However, when you place the orders after the system calculates the amount you can get, the asset price might have changed significantly and the orders would fail. This often occurs when the buy/sell ratio is close to or equal to 100%.
A market order is an order plan to instantly buy or sell at the best available price. It is executed based on the limit orders that are already located in the order book, meaning that market orders depend on market liquidity to be completed. Unlike limit orders that are placed on the order book and wait for someone to execute them, market orders are executed immediately at the current market price. Therefore, when completing a market order on Binance, you will be paying the trading fees as a market taker.
Note: in extremely fluctuating market conditions, market orders may not be executed immediately.
  • Market orders are transactions meant to execute as quickly as possible at the current market price.
  • Limit orders set the maximum or minimum price at which you are willing to complete the transaction, whether it be a buy or sell.
  • Market orders offer a greater chance that an order will go through, but there are no guarantees, as orders are subject to availability.

How to place market buy orders?

1. By [Total]

Suppose you own 1,000 USDT and want to place a market order for BTC/USDT. When you place a “Buy 100%” order, the system will execute your order at the current market price according to the amount of USDT you have, but it is uncertain how many BTC you can buy. The final BTC transaction amount is determined by the market price and quantity when the order is placed. You can check the amount of BTC bought and the average price from [Order History].

2. By [Amount]

For example, you own 100,000 USDT, and the price of BTC/USDT is fluctuating around 34,105 USDT. When you place a “Buy 100%” order, the system will match your order with the sell orders on the market to determine how many BTC you can buy.
If the system calculates that you can buy 2.932401 BTC with 100,000 USDT and you click to place the buy order, but at the same time BTC price increases, meaning that 100,000 USDT can no longer buy 2.932401 BTC, your order will fail. You can place another order by manually editing the amount of BTC to buy or use the [Total] function instead.

How to place market sell orders?

1. By [Total]

Suppose you own 100 BTC and want to sell 50% with a market order. The amount of USDT from selling this 50 BTC will be determined by the current market price and quantity when you place the order. You can check the amount of USDT obtained from the order and the average selling price from [Order History].

2. By [Amount]

For example, you own 0.06272BTC and the price of BTC/USDT is fluctuating around 33889.26 USDT. When you place a “Sell 100%” order, the system will match your order with the buy orders on the market to determine how many USDT you can obtain.
If the system calculates that you can sell 0.06272BTC for 2125.534 USDT and you click to place the sell order, but at the same time BTC price drops, meaning that 0.06272BTC can no longer sell for 2125.534 USDT, your order will fail. You can place another order by manually editing the amount of USDT to get or use the [Total] function instead.
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