Market Order

An order to buy or sell a stock immediately at the best available current price.

What Is a Market Order?

A market order instructs your broker to buy or sell a stock immediately at the best available price. It prioritizes speed of execution over price — you'll get filled quickly, but the exact price isn't guaranteed.

When to Use Market Orders

Market orders are ideal for highly liquid stocks (Apple, Microsoft, etc.) during regular trading hours, where the bid-ask spread is tight. For these stocks, the difference between the quoted price and your fill price will be minimal.

When to Avoid Market Orders

Avoid market orders for thinly traded stocks, during pre-market or after-hours trading, and especially right after earnings reports when prices are swinging wildly. In these situations, a market order might fill at a price significantly different from what you expected — this is called slippage.