Understanding Market Orders in Equity Trading

Very Easy Equity Market Structure Order Types And Instructions

In the context of equity trading, market participants utilize various order types to execute their trades effectively. One common type of order is the 'market order.' A market order is defined as an order to buy or sell a security immediately at the best available price in the market. When placing a market order, traders typically prioritize immediacy over price.

Which of the following statements about market orders is true?

Market orders ensure that the security will be bought or sold at a specific price.

Market orders are executed at the best available price without limitations.

Market orders can only be placed during normal trading hours.

Hint

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