Market Order
Execute immediately at whatever price is available.
What is Market Order?
An instruction to trade right now at the best available price. It guarantees execution but not price - dangerous in thin or fast-moving markets, where the fill can land far from the last quote.
Market Order: a worked example
A market order in a stock quoted $10.00 x $10.40 may fill at $10.40 or worse.
What is the difference between Market Order and Limit Order?
Market order guarantees execution, not price. Limit order guarantees price, not execution.
Often confused with Limit Order - see Market Order vs Limit Order side by side.
More terms in Positions & Trade Mechanics
Long Position
You own the asset and profit when its price rises.
Short Position (Short Selling)
You borrow shares, sell them, and profit if the price falls.
Margin
Borrowing from your broker to buy securities, using the account as collateral.
Cash Account
An account where every purchase is paid for in full, no borrowing.
Leverage
Using borrowed money to increase exposure relative to your own capital.
Initial Margin (Reg T)
The equity you must put up to open a margin position - generally 50%.
Maintenance Margin
The minimum equity percentage you must keep in a margin account.
Margin Call
A demand to add cash or securities after equity falls below maintenance.