StockBrokers.com

Definition of the Week: Market Order

• Tweet

• Tweet

Online stock broker definitions from stockbrokers.com

Market Order

What is a market order?

A market order is a buy or sell order in which the broker is expected to execute the transaction at the best price currently available in the market. A market order is often cheaper than a limit order, but it gives the investor no control over the price at which the transaction is completed.

stockbrokers.com Explains Market Orders

A market order is the best way to get a transaction completed in a timely manner, but it also comes with increased risks. The broker through which the order is entered will find the best price available, but sometimes the best price available may be far different than what the investor was expecting to receive when placing the order. Investors and traders would be well-suited to avoid using market orders during times of extreme volatility in the market. In addition, market orders are a bad idea when you are dealing with a thinly traded stock.

Related Posts

• Definition of the Week: Limit Order
• Definition of the Week: Stop Order
• Trade Order Expiration Types Explained
• Definition of the Week: Good Til Cancelled
• Comparing the New MB Trading Account Types