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MKT
(Market Order)
A MKT (Market Order) executes immediately at the best available current price - the Ask when buying or Bid when selling. Market orders prioritize execution speed over price control.
While ensuring execution (except in halted markets), market orders may suffer slippage during volatility. They're suitable for liquid securities but risky for illiquid stocks where spreads are wide. About 45% of retail equity orders are market orders. During flash crashes or news events, market orders can fill at unexpectedly poor prices, making LMT orders safer in turbulent conditions. Most brokers default to market orders for simplicity.
While ensuring execution (except in halted markets), market orders may suffer slippage during volatility. They're suitable for liquid securities but risky for illiquid stocks where spreads are wide. About 45% of retail equity orders are market orders. During flash crashes or news events, market orders can fill at unexpectedly poor prices, making LMT orders safer in turbulent conditions. Most brokers default to market orders for simplicity.