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Immediate Order

An immediate order is a type of trading instruction that requires the immediate execution of the order at the current market price or a specified limit price. If the order cannot be fulfilled immediately, it is canceled. Immediate orders are often used by traders who want to take advantage of short-term price movements without waiting for future execution. These orders prioritize speed over price precision, especially in volatile markets.

Example

A trader places an immediate order to sell 500 shares of stock at the current market price. If the market cannot fill the entire order instantly, the unfilled portion is canceled.

Key points

• Requires immediate execution or cancellation if not fulfilled instantly.

• Used by traders to take advantage of short-term price movements.

• Prioritizes speed of execution over price precision.

Quick Answers to Curious Questions

Traders use immediate orders in volatile markets when they need quick execution to capitalize on short-term price movements or avoid further price changes.

If an immediate order cannot be executed right away, it is canceled, ensuring no part of the order remains in the market.

Immediate orders prioritize speed and execution, while limit orders focus on price precision and may not be filled if the market does not reach the specified price.