How will a new incoming buy market order for 30 futures contracts be executed in continuous trading?

A new incoming buy market order for 30 futures contracts aims to be executed at the best available prices in the market. In continuous trading, market orders generally take precedence and fill against existing sell orders in the order book. The correct choice reflects the scenario where there is insufficient liquidity in the market to satisfy the entire order immediately.

If the available sell orders at the best price can only fulfill part of the buy market order, and there are not enough contracts available at that price for the entire quantity specified in the order, the remaining portion of the market order would be unable to execute immediately.

In this situation, while one might expect that a market order would always result in an execution, it's crucial to understand that if there's not enough market depth at the specified price levels, the order would need to be placed in the order book as a pending order until sufficient contracts become available to fill it. Hence, asserting that no execution occurs and the market order is simply added to the order book accurately captures this dynamic.

The other choices suggest various degrees of immediate execution without considering market depth and available liquidity, which may not align with the actual behavior of order execution in the trading system. The choice indicates a fundamental understanding of how market orders interact with the liquidity in