A market order is an instruction to buy or sell at the current market price, i.e. without a specified price. Take a buy order as an example:
Assume the market bid and ask prices of EURUSD are 1.02150 and 1.02160 respectively. Investors can choose to place a market order, which will be executed at the next available market price.
2.1 Market orders are executed at the current market price, so there is no guarantee of a better execution price. If the market changes rapidly, there may occur a certain amount of slippage.
2.2 On the sell side:
a. The take-profit price should not be higher than the best bid price.
b. The stop-loss price should not be lower than the best bid price.
2.3 On the buy side:
a. The take-profit price should not be lower than the best ask price.
b. The stop-loss price should not be higher than the best ask price.