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What is the difference between market orders in dollars and market orders in shares?

Mohamad Daou avatar
Written by Mohamad Daou
Updated over 2 months 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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