markaðarröð

Markaðarröð refers to a specific order type used in financial markets. It is a buy or sell order placed at the best available price at the time of execution. Unlike a limit order, which specifies a maximum or minimum price, a market order prioritizes speed of execution over price certainty. When a market order is submitted, it is immediately matched with the best available opposing order in the market. This means that if you place a buy market order, you will purchase the asset at the lowest selling price currently offered, and if you place a sell market order, you will sell at the highest buying price currently available.

The primary advantage of a market order is its high likelihood of immediate execution, especially in liquid markets. This makes it suitable for traders who want to enter or exit a position quickly and are less concerned about minor price fluctuations. However, in volatile or illiquid markets, market orders can result in significant price slippage, meaning the execution price might be substantially different from the price quoted when the order was placed. Traders should be aware of this risk when using market orders. Market orders are typically the default order type on most trading platforms.