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.
With your Robinhood account, you can place 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.
Keep in mind, it’s not guaranteed your market order will be executed at a specific price. Additionally, our venues don’t support market orders during extended hours trading. If your market order is placed outside of regular market hours, the order will be queued for opening of regular market hours on the next trading day unless the order is subject to collaring (detailed below) in which case it may be executed during extended hours. Learn more about Extended-Hours Trading.
Depending on the price your order is filled at, the final dollar amount of your share-based order may change when you place a market order. Similarly, depending on the price your order is filled at, the final share amount of your dollar-based order may change.
The market price shown in the app is the last trade price on the Nasdaq Stock Market, which might not be the best available price when the order is executed.
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 can prevent overspending the available funds in your account. We use the last trade price on the Nasdaq Stock Market 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).
If your order was collared, it’s possible your order may not be filled. For example, if your order was entered overnight or during a trading halt and the stock price changes drastically, your order may not be filled.
|Market session||Pre-market||Market hours||After-hours|
|ET||7–9:30 AM||9:30 AM–4 PM||4–8 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.