Definition

An order to buy or sell a security immediately at the current market price.

What to consider

  • Use market orders when you need to execute a trade immediately.
  • Be aware that prices can fluctuate rapidly during execution.
  • Consider if a limit order might better suit your strategy.

Real world scenarios

  • Wanting to ensure his purchase was executed immediately, Chris placed a market order to buy the stock at the current market price.

Related terms

Investments & Retirement