Market order is used to place an immediate execute order with the broker whatever the price is at the moment. A Market order is different from a limit order in that a limit order specifies the price while a market order is executed at the market price. Commissions on market orders tend to be less than that of limit orders.
A market order is used when trader wants to enter or exit a stock immediately. However, one needs to be wary of the risks of entering market orders in low volume stocks as the prices may be artificially inflated or depressed at the time of execution.
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