A market order is an order to buy or sell a stock immediately at the best available current price.
How market orders work
When you place a market order during market hours, your order is sent to the market and typically executes right away at or near the current market price. Market orders prioritize speed of execution over price.
When to use a market order
Market orders work best when:
- You want your order to execute as quickly as possible
- You're trading highly liquid stocks with narrow bid-ask spreads
- Getting the trade done is more important than getting a specific price
Things to consider
- Price may vary: The price you see when placing the order may differ from your actual execution price, especially for volatile stocks or during fast-moving markets
- Extended hours: During extended-hours trading, market orders convert to limit orders to protect you from extreme price swings
- Low-volume stocks: For stocks with low trading volume, market orders may fill at prices significantly different from the quoted price
Default order behavior
| Order type | Market hours (9:30 AM–4 PM ET) | Extended hours (7–9:30 AM and 4–8 PM ET) |
|---|---|---|
Share-based buy | Market | Limit |
Share-based sell | Market | Limit |
Dollar-based buy | Market | Limit |
Dollar-based sell | Market | Limit |