A market order is a type order that can be used when buying into a new position, or selling out of an existing one, that will execute nearly instantaneously at the best available price.
In a market with low volatility, a market order will be executed and filled at a price equal to or better than the price offered.
Please note, in a scenario where your desired order quantity exceeds the market availability of contracts at the target price, we will fill the order with contracts from the next best price up until a $2.00 contract price differential from the target price. Any remaining order quantity above a $2.00 threshold that goes unfilled will be cancelled automatically in order to protect you from market illiquidity.
A limit order is the alternative to the market order, and can be used to better control the prices as which your trades execute, but does not guarantee a filled order.
How to place a market order
You can place a market order when buying into a new position, or selling out of an existing one.
To place a market order:
- On the Order Window screen, select Market Buy or Market Sell depending on the type of trade
- Select either a quantity of contracts or an amount of dollars to trade with
- Place the order