Market operations are based on buying an asset and selling it later, making a profit whenever possible. There are two ways to buy or sell: “at market” and “limit”.
When you place a buy or sell limit order, you are thinking about futures prices.
For example, Bitcoin is currently costing $50,300 and you want to buy when the price reaches $49,900, in which case you would use a limit order set at $49,900. When the price reaches this predefined value, the order will be executed, with no need for you to follow up. However, when the asset reaches the expected value, it may happen that your order is not fully executed and you buy only part of the desired amount.
Sometimes you want to buy/sell the asset as soon as possible as the charts indicate a more favorable move. Placing limit orders in these cases can become a real inconvenience due to the robots that dominate the market and that keep placing an order in front of yours almost instantly, taking a long time to execute it. In these cases, the best solution is to use a market order.
The market order is intended for those who prefer or need their order to be executed with a certain urgency, without waiting for the market to move to a certain value. From the moment you send an order to market, it is executed immediately, taking the best prices from the order book. It's the easiest way to buy and sell right away.
It is important to know that the last traded price is not what you will get when placing a market order. The order book can change quickly since the last traded price, especially on less popular trading pairs. So when you place a market order you are not guaranteed the exact price you are trying to buy or sell at. It all depends on what is available in the order book at the exact time your order is being placed.
With respect to broker fees, market orders usually have a higher fee. These are the main differences between limit order and market order, both have their goals and should be used
according to your trader profile. Always remember to research the rates of the broker you use and make the best decision.