Market order is where the stock trader prefers to buy or sell a stock at a price, which is very close to the existing current price.

This type of order mostly tells a share broker “Execute the transaction for the best price available price”.

For instance, if Peter orders, “Buy 1,000 shares of IBM MKT”.

The broker will buy the IBM for the best current price.

If there is an offer from one seller for 1,000 IBM shares for a price of $29, the broker will execute the purchase at that price; however, if there is no one providing all the 1000 shares together and if:

There is another offer from another seller where he is ready to sell 200 IBM shares $29, and another offer for 400 IBM shares at $29.50, and if there is a third offer for 600 IBM shares for $30, the purchase of 1,000 IBM will be executed as follows:

• 200 shares at $29 per share = $5,800.
• 400 shares at $29.50 per share = $11,800.
• 400 shares at $30 per share = $12,000.
• Total cost of the transaction: $29,600.
• Average price per share: $29.60.

Different Types of orders with expiry date:

1. A day order is any order which has a specific expiry date, which can be just for the current day, week, month, or an even longer period.
   If the criteria for the order is not met and the order is not executed on the current trading day and if there is a specified expiry date, then the order is automatically transferred to the next trading day and this continues until the expiry date. If the conditions for the order are met before the expiry date it is executed otherwise the order is cancelled.
2. Good Until Cancelled (GTC): This order comes without a specifically mentioned expiry date; however, this order can be stopped from execution with cancellation whenever the investor prefers. Investors are supposed to keep track of these orders in a way to prevent future surprises, if they forget to cancel it when they think it is needed, the broker will not know what is in the investors mind and might execute it when the other conditions are satisfied.