An order to buy
at the best price
available when the order is made. Brokers
who execute these orders must make a good faith effort to find the best possible price. It is also called an at-the-market order.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
A customer order for immediate execution at the best price available when the order reaches the marketplace. This, the most common type of order, has the advantage of nearly always being filled because no price is specified. Compare limit order
. See also elect
, stop order
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
When you tell your broker to buy or sell a security at the market, or current market price, you are giving a market order. The broker initiates the trade immediately.
The amount you pay or receive is determined by the number of shares and the current bid or ask price. Market orders, which account for the majority of trades, differ from limit orders to buy or sell, in which a price is specified.