How are market orders executed ?

#1
guys correct me if ia m wrong , market orders to buy are executed @ offer price
and market orders to sell are executed @ bid price?
consider this quote( sw in qtn is tradetiger)
Current price 17.80 bid price 17.80 offer price 17.85

I placed a order to buy 1 share @ market , it got executed @17.85 ,

is it supposed to happen this way ?
(I used to believe that buy @ market was executed at current price)
 

bunny

Well-Known Member
#2
There are two types of orders in the book:
Buy orders (bid price and qty) - from those wanting to buy
Sell orders (ask price and qty) -from those wanting to sell

Both the above types are limit orders.

If market order to buy comes in, the best seller's order will be executed.
If market order to buy comes in, the best seller's order will be executed.

Thus there are always two types of market prices:
Market price for selling(same as best bid, equal or less than LTP)
Market price for buying(same as best ask, equal or more than LTP)
 

columbus

Well-Known Member
#4
guys correct me if ia m wrong , market orders to buy are executed @ offer price
and market orders to sell are executed @ bid price?
consider this quote( sw in qtn is tradetiger)
Current price 17.80 bid price 17.80 offer price 17.85

I placed a order to buy 1 share @ market , it got executed @17.85 ,

is it supposed to happen this way ?
(I used to believe that buy @ market was executed at current price)
Never go for Mkt.Orders,always prefer Limit orders.
 

nac

Well-Known Member
#5
guys correct me if ia m wrong , market orders to buy are executed @ offer price
and market orders to sell are executed @ bid price?
consider this quote( sw in qtn is tradetiger)
Current price 17.80 bid price 17.80 offer price 17.85

I placed a order to buy 1 share @ market , it got executed @17.85 ,

is it supposed to happen this way ?
(I used to believe that buy @ market was executed at current price)
Yeah, it happens this way.

And don't use market order, if you wanna get printed right away bid higher than ask (5 or 10 paise) and offer lower than bid you will get printed.
 

rajeabc

Well-Known Member
#6
guys correct me if ia m wrong , market orders to buy are executed @ offer price
and market orders to sell are executed @ bid price?
consider this quote( sw in qtn is tradetiger)
Current price 17.80 bid price 17.80 offer price 17.85

I placed a order to buy 1 share @ market , it got executed @17.85 ,

is it supposed to happen this way ?
(I used to believe that buy @ market was executed at current price)
You might not get the shares at CMP as your share price would match next seller's price if you have not put the price limit .

lets take a simple ex: Three sellers are there in the Qs.
SELLER1: want to sell at @19
SELLER2: want to sell @ market
SELLER3: want to sell upto @17.75

Now you place an order
YOUR ORDER : @ market price .... you will get @ 19 as first person is the Q is selling @19
YOUR Order : want to buy @17 : you will get @ 17 from SELLER2 because he has placed order for market price


Please correct me if I am wrong
 

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