Market orders

[lloydmarie]

With version 12.0, there are different ways to trade from the charts. One way is to put the Trading Panel on the chart. The Trading Panel has different buttons including a Buy Market button and a Buy at Ask button. What is the difference? I thought when you buy at the market, you are always buying at the ask.

Thanks.

[eSignal_EricL]

Hi lloydmarie,

You are correct, you are always buy at the ask (which is the same as buying at the market), if you are a retail brokerage customer. However, it is possible for institutions to buy at the bid or sell at the ask.

Eric

[eSignal_EricL]

Hi lloydmarie,

A clarification: If you buy or sell at the market and there is not enough size to fill your order at the current bid or ask price, the next lower bid (if selling) or next higher ask price (if buying) is used until your order is filled.

If you place order to buy at the ask or sell at the bid and there is not enough size to fill your order, then it is now, in essence, a limit order so it has to be filled at the current bid price (or better) or at the current ask price (or better).

Sincerely,

Eroc