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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 a week ago

This is best explained through an example.

Let's say its 6pm ET, the market is closed, and Google ended the previous day at $100/share.

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

The next morning, the stock price opens at $110/share (the US markets have after-hours and pre-market trading sessions that can affect the share price mostly available to institutional investors). Both Moe and Leila's trades are executed at 9:30am ET.

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

That's the difference between the 2 market order types!

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