Market Order

A market order is an order to buy or sell a stock at the best available price, which can typically be executed at the time of the order.

A market order is an order to buy or sell a stock at the best available price, which can typically be executed at the time of the order.

  • When trading large-cap or highly liquid securities, a market order is usually filled immediately at a price very close to the market price. However, when the market is extremely volatile, it’s possible that the filling price may deviate significantly from the market price.

  • For small-cap or illiquid securities, market orders can take longer to fill and may fill at a price deviating from the market price.

To sum up:

Market order has the best chance of filling, but the filling price is not certain.

If you’re trading large-cap or highly liquid securities, placing a market order usually enables immediate order filling at a close price. If you want to control your filling price, or you’re trading small-cap or illiquid securities, a market order may not be suitable.

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Lesson List
1
Limit Order
Market Order
3
GTC vs Day Order
4
Stop Limit Order
5
Market, limit, or stop order?
6
Stop Order
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