What type of trades are described as "costs are not important"?

Market orders are characterized by the notion that costs are not foremost in the execution strategy. When an investor places a market order, they are prioritizing the immediate execution of the trade over the price at which it is executed. This means that the investor wants to buy or sell a security right away, accepting potentially unfavorable prices because they value the speed and certainty of execution more than the cost implications.

In volatile or fast-moving markets, the price at which a market order is executed can fluctuate rapidly, and it may not be the price displayed at the moment the order was placed. This is an important consideration because while the investor may place less emphasis on transaction costs, they still need to be aware that the final execution price may differ from their expectations. Thus, the focus is on securing the trade rather than minimizing the expense involved.

This stands in contrast to other types of orders, like limit orders, where specific price targets dictate when the trade will be executed, and costs play a more vital role in the decision-making process. Examples like stop-loss orders or broker discretion orders also have different priorities compared to market orders—either aiming to limit losses or relying on a broker's judgment, respectively.