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Orders and the book

An order book is a list of people waiting to buy and sell. A market order takes what is there. A limit order waits for your price, and it may never fill.

Market and limit

A market order says fill me now. In a thin book, now can be a much worse price. A limit order says only at this price or better. It can sit there while the market leaves.

The gap

The last price on a chart is a trade that already happened. Your trade is the next one, against the offers that are actually resting.

Look at the size available near the price, not only at the last dot.

Check yourself

Will a market order always fill at the last price?

No. It fills against whatever is offered, which can be worse.

After this you can choose whether you need a fill now or a price, and look at the size on the book.

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