Market orders are one of four different order types available using Wealthsimple's self-directed investing accounts. Other order types include —
How do market orders work?
A market order allows you to buy or sell a security or cryptocurrency immediately at the best available price at the time of submission. A market order is the default order type in Wealthsimple's self-directed investing accounts.
-
Market buy: You place a buy order on the market, and your order gets filled as soon as possible and at the lowest available price at the time that you submit your order.
Note: WSII has implemented a cash reservation on market buy orders to ensure you have sufficient funds in the account to cover the full balance of your trade in the event of a sudden price movement. However, the responsibility still remains with you to ensure that you have sufficient funds in your account to complete an order. Market buy orders for stocks, ETFs, or options queued for the market open that may cause a delinquency in your account may be cancelled. Market orders for stocks, ETFs, or options with low liquidity may be unfilled or partially unfilled which will be canceled.
- Market sell: You place a sell order on the market, and your order gets filled as soon as possible at the highest available price at the time that you submit your order.
A note from the legal team: Market orders fill as soon as possible, at the best available price contingent on the liquidity at each price level. Our executing brokers are obligated by law to give you the best available price based on the National Best Bid and Offer (NBBO).
What to expect
- If the market is closed at the time you submit your order, the order will execute when the market opens.
- In fast-moving markets, market sell orders can execute at a significantly lower price than expected. We suggest using a limit sell with a set price if you do not wish to sell your security below a certain amount.
- Any unfilled market orders will expire at market close and will be cancelled. To learn more about why your market order was cancelled, please review troubleshooting your cancelled order.
- Market orders on cryptocurrencies expire 24 hours after being placed if they cannot be filled and cannot be extended.
Comments
0 comments
Please sign in to leave a comment.