What is Market Order?

Market order is also known as unrestricted order. This mean that the broker who works for you sells or buys shares at the best price available on the market. This type of order guarantees sales success and it also has another advantage that the commission what the customer pays out the to broker is low because there is only minimal work involved with this type of purchase or sale. Another advantage of the market order is that in almost all cases there’s a confirmation on the price before the transaction is fulfilled. There is a disadvantage if using this process and it can happen that the customer would pay more on the selected stock if this has low average daily volume. In more common terms there might be a much higher asking price then the actual market price and this equals large spread. It is best to use this process with stocks which have a high-volume. At first glimpse using this type of order might seem risky because there isn’t a minimum or a maximum price set, but as with most trading systems they have implemented safety catches so investors would be protected from unexpected changes or unreasonably high stock prices which can occur.