The integrity of control operations in the smart grid (SG) heavily depend on its monitoring system, which relies on the sensors mounted across the wide-area network (WAN). Utilizing the monitoring capability of SG for a conducive electricity market operation demands high accuracy in real-time sensor measurement. While synchronized measurements from phasor measurement units (PMUs) have improved the reliability compared to the classical sensors (CSs), the high installation cost often hinders the installation of PMUs throughout the WAN. The selection of sensors for wide-area monitoring dependent operations like the electricity market involves maintaining a trade-off between the conflicting objectives of sensor installation cost and accuracy in measurement. Although the objective of the necessary requirement of network observability using sensor data can be fulfilled through various configuration, the impact of sensor information on the electricity market differs as per their location. In this regard, the present work proposes a binary optimization-based approach for identifying strategic sensor placement locations in SG to minimize the disruption in the electricity market. The strategic sensor location aims at improving the resiliency of electricity market operation by minimizing the impact of sensor accuracy on nodal electricity price. The resiliency is achieved while simultaneously meeting the objectives of reduced sensor installation cost and fulfilment of network observability criterion. The effectiveness of the trade-off solution has been validated for standard IEEE 14, 30, and 57 test systems.