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Search for an ETF or holding
Updated 2mo ago.
Updated 2mo ago.
A market order is an instruction to buy or sell a security immediately at the best available price. Execution is guaranteed, but the exact price is not — you pay the ask price when buying and receive the bid price when selling.
You want to buy 50 shares of XEQT.TO. The order book shows:
By placing a market order, your 50 shares are bought instantly at $28.45. Simple and fast.
But if the ETF has low liquidity and only 20 shares are available at $28.45, the remaining 30 shares could be purchased at a higher price ($28.50, $28.55...). This is the risk of "slippage."
The market order is the simplest, but it can cost you on low-volume ETFs or during high volatility. For popular ETFs like VGRO.TO or XEQT.TO with millions of shares traded daily, the risk is minimal. For large purchases or less liquid ETFs, use a limit order instead.