Market Orders in Prediction Markets
A market order says "fill me now at whatever price is available." On the buy side, you pay the current ask. On the sell side, you receive the current bid.
When to Use Market Orders
Market orders make sense when:
- Speed is more important than price (breaking news events)
- The spread is very tight (1-2 cents) and slippage is minimal
- You're trading small size relative to orderbook depth
- You need to exit a losing position urgently
When to Avoid Market Orders
- Wide spreads: A 10-cent spread means you're overpaying significantly
- Thin markets: Your order might fill across many price levels
- Non-urgent entries: If you're building a position over days, limit orders save money
Market Orders on Kalshi
On Kalshi, you submit a market order by placing a limit order at a price guaranteed to cross the spread. For example, to buy immediately, you might submit a buy order at 99 cents — it will fill at the best available ask, not at 99 cents.
Impact on Your Returns
For a typical prediction market trade with 10 points of edge:
- Limit order fill: You capture close to 10 points of edge
- Market order: Spread cost eats 3-5 points, leaving 5-7 points of executable edge
Over hundreds of trades, this difference compounds significantly. Professional traders use limit orders for 90%+ of their activity.