A Market Order is an immediate order to open a position, i.e. to buy or sell an instrument at the price which is currently offered at the market.
How to use market orders?
If you would like to buy at the Ask price, browse the Dealing Rates Table on the trading platform, locate the desired instrument and click on the Ask/Buy price in the table.
This will open a window for the desired market order. Set the amount of units you wish, and click OK.
Your order will be instantly executed at the current market price. If you would like to sell an instrument, click on the Bid/Sell price for the desired instrument in the Dealing Rates Table and set your position preferences.
Where can I see my order?
Market orders are executed immediately and open a position. Therefore it will appear in the Open Position window on the trading platform.
Market Orders FAQ
There’s some disagreement among day traders regarding whether market orders should be used or not. On the one hand it’s possible to get filled at a horrible price when using the market order, but others argue that with spreads that are often a penny or less, and so much liquidity in most stocks, using limit orders no longer makes sense. Not using a market order could lead to missing out on a good trade in a fast-moving market is the argument used in this case. Ultimately the decision is yours to make, just be sure you understand the risks and rewards that go with using market orders.
A good for day market order is a type of market order that only last for the trading session in which it is opened. If it is not filled by market close it expires and is not active for the following trading session. In contrast, a good until cancelled order remains open until it is filled. In this respect both are actually limit orders, even though they are filled at market price when they become active. This type of order is often used by day traders, or by those looking to trade some news release.
In many cases a market order will fit the bill perfectly. If the price of the stock is near where you’d like it, the stock is not too volatile or illiquid, and you know you definitely want to buy the stock a market order is just perfect for your needs. A limit order is good if you think a stock is overvalued now, but worth buying at a lower price. In that case you could place a limit order below the current price and wait for price to pull back and fill your order. The downside is that price might not ever pull back to fill your order.