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A market order is the most common order used to purchase a financial security. In fact, if the person placing the order does not specify any restrictions, then by default the order is said to be a market order. Market orders are usually placed with a broker or brokerage service that charges a fee for making the order.  But since market orders are the easiest type of orders to complete, they usually have the lowest fee charges.

When an investor places a market order, he is saying he will either buy or sell a financial security at the best available price. This price may not always be the currently quoted price for the security. In a fast moving market, where prices can change in seconds, a security’s price can change substantially between the time a person places a market order and the time that market order is completed.

Also, for securities that have low trading volume, there can be a large difference between the ask price and the currently traded price. To avoid this type of spread, an investor should trade in securities that have a high trading volume.

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