Which statement regarding market order entry in continuous trading is true?

The correct answer highlights that market orders are matched based on price priorities, which is a fundamental principle in trading systems. When a market order is placed, it is executed at the best available price in the market at that moment. This means that traders will receive the best bid (for sell orders) or the best offer (for buy orders) available at the time of execution.

Price priority ensures that the orders with better prices (i.e., lower prices for buyers and higher prices for sellers) are fulfilled before those with less advantageous prices. This mechanism maintains market efficiency and fairness, allowing for fluid and efficient trading.

The other options do not capture the essence of how market orders function in a continuous trading environment. For example, while it is true that market orders are typically processed swiftly, they are not always guaranteed to be matched immediately due to market conditions. Additionally, while there are restrictions that can be applied to other types of orders, market orders by nature do not carry restrictions, as they are intended to be executed as swiftly as possible. Finally, while market orders can only be executed during market hours, this does not pertain to the core functionality regarding price priorities which influences their matching process.