Orders & execution
What is a Market Order and when should it absolutely be avoided?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
A market order executes immediately at the best available price, which should generally be avoided in volatile, low-liquidity, or after-hours conditions where the fill price can differ drastically from the quote.
How it works
Market orders prioritize speed over price. In fast-moving or thinly traded stocks, the actual execution price can be far worse than the last traded price shown on screen.
An example
A trader places a market order on a volatile small-cap stock and gets filled 8% higher than the displayed price due to a sudden volume spike.
Risk & limitations
Avoid market orders in pre-market, after-hours, or low-volume stocks, where wide bid-ask spreads can cause significant unexpected slippage.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.