CISI Professional Practice Exam 2025 – Complete Prep Guide

A market order is defined as an order to buy or sell a security immediately at the current market price. This type of order prioritizes speed of execution over price. When traders place a market order, they are willing to accept the best available price at the moment in which the order is executed, necessitating a quick transaction.

This approach is particularly useful when an investor wants to enter or exit a position quickly without concern for minor fluctuations in price. As a result, market orders are typically executed almost instantaneously in a liquid market, ensuring that the trade is completed without delays.

Other options reflect different aspects of trading that do not align with the definition of a market order. For example, an order to buy or sell at a future specified price refers to a limit order, while trading based on specific indicators might relate to more complex strategies rather than immediate execution. Lastly, while market orders are generally executed during market hours, the presentation of this condition does not accurately capture the core functionality of a market order itself.