Buy at Market

A buy-at-market order – known in German-speaking markets as a "Billigst" order – is an order to buy without a price limit. It is executed at the next available tradable price. Unlike a limit or stop order, it is placed as a market order: the buyer does not set a maximum price but pays whatever price the market currently demands.

How it works

A buy order at market is matched with the cheapest available sell orders, so it is filled at the current ask price. If there is not enough volume at the best ask, the rest of the order is executed at the next, higher prices.

Example: a trader places a buy-at-market order for 300 shares. The best ask is $25.00 for 100 shares, followed by $25.04 for 200 shares. The order is filled at both levels, at an average price of about $25.03 – slightly above the price displayed when the order was placed.

Advantages and disadvantages

The advantage is fast and almost certain execution, which matters when a trader wants to enter a market immediately or close a short position. The drawback is that any price is accepted. In thinly traded instruments, after important news or when a market opens with a gap, the fill can be considerably higher than expected. A buy limit order, by contrast, sets the maximum price the trader is willing to pay – but it may not be executed at all.

In forex and CFD trading, a one-click "Buy" order on the trading platform works in much the same way: it is executed at the current ask. The selling counterpart is the sell-at-market order.