In the forex, a market order is the default option and would be quickly executed because it does not have instructions restricting the broker on the buy/sell price or the timeframe in which the order is to be executed. Because of this, at times we refer to the market order as an 'unrestricted order.'
Let us explain this further, a market order is executed once you have placed it. You could use the market price or current spot, or market price.A market order will become an open position immediately and could still suffer fluctuations in the market.This indicates that if the market rate goes against your direction, the value of your position will drop – this is said to be an unrealized loss. Should you choose to close the position at this value, you would realize the loss (it becomes real and you are charged the loss from your margin) and your account balance will be updated to show the new revised totals.
In the forex market, a market order is the first type of trade order and you use the market order to sell or buy a currency pair at the current market price. Currency pairs are sold at the BID price and bought at the ASK price. One good thing about using market orders is that a trader is sure to get the trade filled. If the trader absolutely wants to get out or into a trade, a market order is the best method of getting this done. The downside of using a market order is that slippage con occur (getting filled at a less favorable price). Market orders should only be used to enter trades when there is good liquidity in the market; otherwise, significant slippage could occur
Market orders are placed live at market, which means you will decide the enter the trade manually. Intraday traders and in particular scalpers are likely to use market orders to enter the market.
A market order guarantees execution, and it often has low commissions due to the minimal work brokers need to do
A buy or sell order in which the trader wants to execute the order at the best price currently available. Also known as “at the market”. If you can buy the EUR/USD at 1.3800 and sell the EUR/USD at 1.3798, those are the market prices with a two pip spread. If you buy “at the market”, you would be filled at 1.3800 and if you sell “at the market”, you would be filled at 1.3798