Understanding Market Orders

Very Easy Equity Market Structure Order Types And Instructions

In the context of equity trading, investors use various order types to execute their buy and sell transactions. One of the most common order types is a 'market order'.

A market order is characterized by its requirement to buy or sell a security immediately at the best available price. It prioritizes order execution even if it means potentially accepting a less favorable price.

Given this explanation, which of the following statements correctly describes a market order?

A market order guarantees a specific price for the transaction.

A market order is executed immediately at the best available price.

A market order can only be executed during normal market hours.

Hint

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