Market Order

A market order is an instruction to buy or sell Channel Revenue Tokens (CRTs) at the best price currently available on the GigaStar Secondary Market. When an Investor places a market order to buy, it will execute at the lowest available ask price. When an Investor places a market order to sell, it will execute at the highest available bid price. The key characteristic of a market order is speed of execution—it prioritizes completing the trade over achieving a specific price.

Market orders are the simplest type of trade order. They are appropriate when an Investor wants to enter or exit a position quickly and is willing to accept the current market price. For buyers, a market order means paying the prevailing ask price. For sellers, it means accepting the prevailing bid price.

However, market orders carry certain risks, particularly in markets with lower trading volume or wider bid-ask spreads. Because market orders execute at whatever the best available price happens to be, the final execution price may differ from the price the Investor expected when they placed the order. This is especially true if the order is placed when few counterparties are available.

For example, if an Investor places a market sell order but only one bid exists at a price significantly below recent trading levels, the order would execute at that lower price. In more liquid markets with many participants, market orders are less likely to experience significant price deviation.

Investors who want more control over the price at which their trade executes should consider using a limit order instead. Limit orders allow the Investor to specify the maximum price they will pay (for buy orders) or the minimum price they will accept (for sell orders), though there is no guarantee a limit order will execute.