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Market Order - Definition
Below, you'll find a definition of this investing term...

Definition:  An order to buy or sell a stock at the current market price.  If you are buying the stock, it is the ask price.  If you are selling the stock, it's the bid price. 

TeenAnalyst Advice: Stock prices move very quickly, so placing a market order gives you the least control over what price you end up paying for a stock.  You may enter an order to buy XYZ stock at $40/share but if the stock isn't very liquid, you may end up paying $42/share.

We tend to recommend using limit orders, unless the stock is a large stock with a lot of volume.

 

Related Sections on Our Website

Investing - Learn more about investing basics and strategies.

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