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StockCram is not a broker-dealer, investment adviser, or financial institution. All content is for educational and informational purposes only and should not be construed as personalized investment advice. Consult a qualified financial professional before making investment decisions. Past performance does not guarantee future results.Simple Definition
Buy or sell immediately at the current price. Fast but price may vary.
Why It Matters
Market orders are 'get it done now' orders - you're prioritizing speed over price. For popular stocks like Apple or Microsoft, the price difference is usually pennies. But for thinly traded stocks, you might get a much worse price than expected. Most beginner trades use market orders, but knowing when to use limit orders can save you money.
Key Points
- Best for: highly liquid stocks (Apple, Amazon, Microsoft) where bid-ask spreads are tiny
- Risky for: penny stocks, low-volume stocks, or during market chaos - you might get a bad fill
- Market orders execute almost instantly during market hours, but 'at what price' is unknown until filled
Related Terms
Common Questions
Buy or sell immediately at the current price. Fast but price may vary. Market orders are 'get it done now' orders - you're prioritizing speed over price. For popular stocks like Apple or Microsoft, the price difference is usually pennies.
Market orders are 'get it done now' orders - you're prioritizing speed over price. For popular stocks like Apple or Microsoft, the price difference is usually pennies. But for thinly traded stocks, you might get a much worse price than expected. Most beginner trades use market orders, but knowing when to use limit orders can save you money.
Best for: highly liquid stocks (Apple, Amazon, Microsoft) where bid-ask spreads are tiny
Risky for: penny stocks, low-volume stocks, or during market chaos - you might get a bad fill
Market orders execute almost instantly during market hours, but 'at what price' is unknown until filled