A market order is an instruction given to a brokerage to buy or sell a security or commodity at the best available current price. It does not contain restrictions on the price or the timeframe in which the order can be executed. Market orders are used when certainty of execution is a priority over the price of execution. This type of order guarantees that the order will be executed, but does not guarantee the execution price.
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Jenna Lofton, MBA is a stock trading and investment expert with over a decade of experience in the financial industry. She began her career as a financial advisor on Wall Street and now helps everyday investors make smarter financial decisions through StockHitter.com.
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