No price is specified, but the broker, or your online system, fills the order at the best available price. You pass the responsibility to the floor brokers who fill the order as best they can. Floor brokers are governed by the CFTC and exchange rules to give you the best possible service. However, you don t have control over the market. When markets are trading choppy with a lot of volatility and low volume, you may not want to use a market order.
Market orders have the highest level of priority and get filled first.
Stop orders are orders that become market orders when a particular price level is reached. You place buy stops above the market if you are bullish on prices. You place sell stops below the market if you are bearish on prices. Stop orders are often used to close out or protect profitable positions. If the market moves against you, your sell stops are hit.