Your market order executes at multiple price points when there isn't enough quantity available at the best price. The exchange matches your order against the best available prices until your entire quantity is filled. When you place a market order, the exchange fills it at the best available bid/offer. If that price level doesn't have enough shares, your remaining quantity gets matched against the next best prices.
Example scenario
If you place a market order to buy 3,500 ITC shares with this market depth:
- 108 shares execute at ₹263.20.
- 934 shares execute at ₹263.30.
- The remaining 2,458 shares will execute at ₹263.35.
With a limit order to buy 3,500 shares at ₹263.20, only 108 shares would execute immediately. The remaining 3,392 shares would stay as a pending order, waiting for sellers at your specified price.
Did you know? If any of the bids/offers have a disclosed quantity, the quantity executed may differ from what is seen in the market depth.