Market order

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A market order is an order to buy or sell a stock at the current market price. Unless a trader specifies otherwise, his or her broker will enter the order as a market order.

The advantage of a market order is it is virtually guaranteed to be executed (as long as there are willing buyers and sellers). Depending on a firm’s commission structure, a market order may also be less expensive than a limit order.[1]

References[edit]

  1. market order. Securities and Exchange Commission.