Part 8: Market Order

Welcome back, Apricot Investors! We’ve been talking about how to buy “seeds” for your financial garden and presented Limit Orders [link] that give you the flexibility to buy at the price you set. Today, we’re discussing a straightforward, yet essential one: the Market Order.

Market Orders: Transactions at the Current Price

Imagine you’re back at the farmers’ market, and this time you spot a basket of blueberries you love. You’re craving them, and you want them right now. You’re not sure what a fair price is, or maybe you just don’t want to bargain.You just want to buy them quickly and easily. That’s the idea behind a market order.

In the stock market, a market order is an instruction to buy or sell a specific number of shares at the current market price. It’s the simplest type of order, and it’s usually executed immediately.

More About Market Orders

• Speed: Market orders are filled quickly, which is helpful when you want to buy or sell right away.
• Guaranteed Execution: Unlike limit orders, market orders are almost always filled, unless there’s very little trading activity in that particular stock.
• Simplicity: They’re easy to understand and place, even for beginners.

Think of It As…

Buying (or selling) those blueberries at the price displayed in the market. You trust the market price is fair, and you want to complete the transaction quickly.

Risk: Market prices can fluctuate rapidly. Your order might be filled at a slightly different price than what you saw when you placed the order.

Market Orders vs. Limit Orders

Every tool in the gardening shed has its purpose. Limit orders offer price control, while market orders offer speed and convenience. The best tool depends on your situation and goals.

Join us in Part 9 as we continue to nurture your financial know-how!

Disclaimer: The examples in this text are for illustrative purposes only. This does not constitute investment advice or a recommendation to buy or sell any specific investment instrument.

Apricot Capital is regulated by the Central Bank of Armenia.