A market order is an instruction to buy or sell a currency pair immediately at the best price currently available in the market.
A market order trades instantly at current market prices, guaranteeing execution but not the exact price you'll receive.
When you place a market order, you prioritize speed of execution over price control—your trade is filled instantly at whatever the current bid or ask price happens to be. Unlike pending orders that wait for specific price levels, a market order executes the moment it reaches your broker's server.
This means you're guaranteed execution, but not a guaranteed price. The actual fill price may differ slightly from what you saw on screen due to slippage, especially during volatile periods or major news events.
Think of it like hailing a taxi on a busy street: you get a ride immediately, but the fare depends on current rates and traffic conditions.
Your broker processes market orders through various execution models, including Straight Through Processing, ECN, or DMA systems, which determine how quickly your order reaches liquidity providers. Market orders differ from limit orders, which allow you to specify an exact price at which you want your trade to execute.
In short: A market order executes your trade immediately at the best available current price, prioritizing speed over price certainty.
Example in Action
You see USD/ZAR quoted at 18.2500 on your screen and immediately click “Buy by Market” to purchase 10,000 units.
Because liquidity is available and the market is calm, your order fills instantly at exactly 18.2500, matching the displayed price.
Your position opens without delay, and your platform confirms the trade at 18.2500 in your order history within a fraction of a second.
The price you see represents the bid and ask prices for this currency pair, with the spread between them determining your entry cost. The bid-ask spread represents the cost of executing your trade in the foreign exchange market.
If the price had jumped to 18.2520 before your order processed and exceeded your maximum deviation setting, you would have received a requote instead of instant execution.
Why It Matters
Market execution determines whether a Kenyan scalper's strategy survives contact with reality. Re-quotes kill momentum. Slippage eats profits, especially when trading the naira or cedi during volatile sessions. Slippage occurs when trades execute at prices different from expected due to market volatility or liquidity gaps.
Execution type shapes whether backtested results from Johannesburg match what actually happens live—or become expensive fiction.
Common Questions
Do African Brokers Charge Higher Spreads on Market Orders Than International Brokers?
Many African brokers charge higher spreads on market orders than top international competitors, particularly on standard accounts. South African and regional brokers often quote EUR/USD spreads from 0.86–2.0 pips, while global brokers offer raw spreads from 0.0 pips.
Can Slippage Affect My Market Order During Low Liquidity in African Sessions?
Yes, slippage frequently affects market orders during African sessions due to exceptionally low liquidity outside major trading overlaps. Thin order books and fewer matching orders cause execution prices to deviate markedly from quoted levels, especially with exotic currency pairs common across Africa.
Which African Currency Pairs Have the Fastest Market Order Execution Times?
USD/ZAR consistently delivers the fastest market order execution among African currency pairs, typically under 100 milliseconds at FSCA-regulated brokers. EUR/ZAR and GBP/ZAR follow closely, benefiting from South Africa's superior liquidity and trading infrastructure.
Do Nigerian or Kenyan Regulators Restrict Market Order Types for Retail Traders?
Neither Nigerian nor Kenyan regulators restrict market order types for retail Forex traders. The CBN and CMA focus on broker licensing, transparency, and fraud prevention, leaving order execution methods largely unregulated and determined by individual broker platforms.
How Does Unstable Internet in Rural Africa Impact My Market Order Execution?
Unstable rural internet delays order transmission to brokers, causing slippage where execution prices differ from displayed quotes. Connection drops can reject trades entirely or produce partial fills, especially during volatile market periods across underserved African regions.
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