Market Order

A market order is a type of stock order that indicates a preference for quick execution relative to price specificity. This generally means you are willing to accept the next available price, and a certain price is not guaranteed.

At Robinhood, you’re able to enter a market order (subject to the potential collaring described below) by selecting either the amount of shares (fractional or whole) or dollar amount of your order.

To buy at a specific price, place a limit order. Learn more about Limit Orders here.

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Market Order Collaring

To help protect our customers from potential price volatility, Robinhood automatically converts most market orders into limit orders using a 5% price collar. Collaring helps cushion against significant price movements and prevents overspending the available funds in your account. We use the last trade price at the time of order submission to determine the limit price. Take note that if your order was collared, there may be times when your order is not filled (e.g., if your order was entered overnight or during a trading halt and the stock price changes drastically).

An illustrative example of a collared order:

1. Jane placed an order by selecting “Buy in Shares” under the market order selector.

2. She requested to buy 1 share of MEOW, while MEOW was trading at $100.

3. Upon submitting the order, Robinhood converted this to a limit order to buy 1 share for $105.

4. This both requires Jane to have $105 in her buying power, and instructs the market to only fill the order if the price is better than or equal to $105.

Will my market order be collared?

Market sessionPre-marketMarket hoursAfter-hours
ET7–9:30 AM9:30 AM–4 PM4–8 PM
Share-based market buys  ✔  ✔  ✔
Share-based market sells  ✔  ✔
Dollar-based market buys  ✔  ✔
Dollar-based market sells  ✔  ✔

All share based market buys are collared, and all market orders (shares and dollar based, buys and sells) entered in an extended-hours trading session (7–9:30 AM ET, or 4–8 PM ET), if eligible for the extended trading session, will be collared.

Please note, not all securities are eligible for the entry of market orders during Robinhood’s extended hours. If a security is not eligible, the order will be queued for the opening of regular market hours. You can learn more about eligible securities by checking out our Extended-Hours Trading article.

Note

The price displayed in the app is the last trade price, and might not be the best available price when the order is executed.

Reference No. 20210623-1696730-5079618-2014866-2038156
Still have questions? Contact Robinhood Support