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Market Order

An FX order to buy or sell a currency immediately at the best available current exchange rate.

Market orders prioritize speed of execution over price precision, ensuring the transaction happens quickly, but it may result in a less favorable rate, particularly in volatile or less liquid markets.

  • Simple Example: TechCorp needs to immediately buy €100,000 to fulfill a contract. They place a market order, and the transaction is executed instantly at the current EUR/USD rate of 1.0900.
  • Numerical Breakdown:
    • TechCorp places a market buy order for €100,000.
    • The current EUR/USD rate is 1.0900, so the order is executed at this rate:
      • 100,000 × 1.0900 = 109,000 USD
    • The transaction is completed instantly, but if the market was volatile, the price could have shifted, potentially resulting in higher costs.
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