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A market order prioritises execution over all other factors. It will trade through the order book to match the specified quantity. That is, one market order can match with opposite orders of different price levels of the order book until the entire market order volume is filled.
If a market order is entered into the order book during continuous trading from 9:00hrs to 17:00hrs, the market order will be matched at the best possible price.
If a market order is entered into the order book outside of continuous trading, the market order will take the indicative equilibrium price.
A market order will have priority over priced orders (e.g. limit orders) as the user of a market order is indicating a willingness to accept any price in return for execution.
A market order must be entered with Fill-or-Kill (FOK) and Fill-and-Kill (FAK) time validities or it will be rejected.
A Fill-and-Kill (FAK) market order will match with the available orders on the opposing side of the order book, and any remaining part of the order will be cancelled. For example, a Fill-and-Kill (FAK) buy market order for 500 ABC shares will be matched against any number of ABC shares on the ask side of the order book, up to 500 share. If there are fewer than 500 shares available, the remaining, unmatched part of the Fill-and-Kill (FAK) buy market order will be cancelled immediately.
A Fill-or-Kill (FOK) market order will only be matched in its entirety, or be cancelled otherwise. For example, a Fill-or-Kill (FOK) buy market order for 500 ABC shares will only be matched if there are at least 500 ABC shares on the ask side of the order book. If there are fewer than 500 shares available, the fill-or-kill (FOK) buy order will be cancelled immediately with no part being matched.
