What is a market order?

When you log onto a spread-betting platform, the number of markets and prices on offer can seem overwhelming, and then when you go to make a trade, which are the right options to select?

There are a number of different types of order you can place with a spread-bet broker, and it’s important to have an understanding of what they are, and the subtle differences between them:

So, what is a market order?

A market order is the most basic type of order, when you place a trade with your broker to ‘buy’ or ‘sell’ a stock, forex pair or commodity immediately, at the best market price available. A typical market order is usually placed immediately at the price you see on the screen, but if the market is moving fast, you may not get in at exactly this price.

When you place a market order, it’s a good idea to add a stop loss order to your trade – this will ensure you get out if the price moves against you, before you lose too much money.

It’s also a good idea to have a limit order in place, which will lock in any profits once the price has moved in your favour.

Related posts:

What is an OCO order? What is a spread?