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What is the difference between market orders in dollars and market orders in shares?
What is the difference between market orders in dollars and market orders in shares?
Mohamad Daou avatar
Written by Mohamad Daou
Updated over 2 weeks ago

This is best explained through an example.

Let's say it's 6 PM ET, the market is closed, and Google ended the previous day at $100 per share.

Moe enters a market order in dollars for $100, while Leila enters a market order in shares for 1 share.

The next morning, the stock price opens at $110 per share. (The U.S. markets have after-hours and pre-market trading sessions that can affect the share price available to Raseed's prime users.)

Both Moe and Leila's trades are executed at 9:30 AM ET.

Moe receives 0.909091 shares for his $100, while Leila gets 1 share for her $110.

That's the difference between the two market order types!

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