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Futures Dictionary Series: At The Market

At The Market

Have you ever heard of the term at the market? To some, it might conjure up the image of traversing at a wet market. But far from it, at the market is one of many jargons in trading. In this fourth installment of Futures Dictionary Series, we are going to explain the term at the market.

At the market is a type of futures trading orders. It is an order to buy or sell a futures contract at the best available price. A futures broker will immediately execute the order at the price that is currently available, no matter what the price may be. This practice is similar to a market order in the securities markets.

At the market orders are used when traders want their orders to be processed and are willing to risk getting a different price. This is because in futures market, at the market orders will always get fulfilled immediately. However, the price at which the order is executed is not guaranteed to be the same as the price requested by the trader.

At The Market

For example, Chong, who trades FBM KLCI Futures Index (FKLI), places an order to buy at market price when the best offer price is 1,591.0 but as he keys in the order, the best offer price moves to 1596.0, thus his long order is done at 1596. This means Leong loses RM250 in that particular moment.

Be careful when you use at the market order as you might take a significant loss during your trade as shown in the above example.
See you next week. Happy trading.

Read more of our Futures Dictionary Series:

1. Futures Dictionary Series: Approved Delivery Facility

2. Futures Dictionary Series: Capital Market Services Representatives (CMSR)

3. Futures Dictionary Series: Actuals

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