Definition

Noun: An instruction given to a broker or trading platform to buy or sell a security (such as a stock or commodity) immediately at the best available current price in the market. It is the most basic and common type of order, prioritizing execution speed over a specific price.

Usage

A market order is used when the trader's primary goal is to execute the trade quickly and with certainty. It guarantees execution but does not guarantee a specific price, as the final price is determined by the prevailing supply and demand at the moment the order reaches the market.

Examples

• Noun:
  • I placed a market order to buy 100 shares of the company.
  • For immediate liquidation, she entered a market order to sell her bonds.
  • The advantage of a market order is that it will almost always be executed.

Advanced Usage

• "to execute/fill a market order": The process of a broker completing a market order.
  • The broker was able to execute the market order within seconds.
• "to place/enter a market order": The act of submitting a market order to a broker or trading system.
  • He decided to place a market order before the news was publicly released.

Variants and Related Words

• Limit Order (n): An order to buy or sell a security only at a specified price or better. This contrasts with a market order, which accepts the current market price.
  • Unlike a market order, a limit order gives you price control but not execution certainty.
• Stop Order (n): An order that becomes a market order once a specified price level is reached.
• Order Book (n): The list of buy and sell orders in a market, which determines the prevailing price for a market order.

Synonyms

• At-the-market order: A less common synonym for a market order.
• Best-efforts order: Emphasizes the broker's obligation to get the best available price, though this is inherent in a standard market order.

Related Phrases

• Market order vs. limit order: A common comparison discussing the trade-off between execution speed and price certainty.
  • New investors must understand the difference between a market order and a limit order.

Noun

1. an order to a broker to sell or buy stocks or commodities at the prevailing market price