| Market Order | |
 An order to buy or sell a stock immediately at the best available current price. |
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 A market order guarantees execution, and it often has low commissions due to the minimal work brokers need to do. Be wary of using market orders on stocks with a low average daily volume: in such market conditions the ask price can be a lot higher than the current market price (resulting in a large spread). In other words, you may end up paying a whole lot more than you originally anticipated! It is much safer to use a market order on high-volume stocks, such as Microsoft or Wal-Mart. A market order is sometimes referred to as an unrestricted order. |
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 Brokers and Online Trading - How do you find the right broker for your investment needs? Start by reading our broker tutorial. Understanding Order Execution - The way in which your broker fulfills your orders can affect your costs. The Basics Of Order Entry - Taking control of your portfolio means knowing when to use particular orders and if they pose added costs. |
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