A market order is a type of stock order that executes at the current market price. Market orders have priority over other order types, so they generally execute immediately during regular and extended trading hours. Market orders are typically used when investors want to trade stocks quickly or avoid partial fills.
Keep in mind, you aren’t guaranteed a price with a market order. Robinhood automatically converts most market buy orders into limit orders with a 5% collar to help cushion against any significant upward price movements. We also convert market sell orders to limit orders with a 5% collar during extended-hours to help cushion against the increased volatility of the extended hours session.
Additionally, Robinhood does not support market orders on all stocks during extended hours trading. If the market is closed, the order will be queued for market open. You can learn more by checking out our Extended-Hours Trading article.
The price displayed in the app is the last sale price, and might not be the best available price when the order is executed.