Definition
The term Market-on-Close refers to broker instructions to buy or sell securities at their market price and at the end of the trading day. Unless trading is halted on a security, a Market-on-Close order will be executed at the very end of the trading day.
Explanation
While an At-the-Close instruction can be combined with a limit order, a Market-on-Close (MOC) instructs the broker to purchase shares at the prevailing market price just before the end of a trading day. This type of order cannot be executed at any other time during the trading session.
The rules for placing this type of order vary by exchange, for example:
A MOC on the NASDAQ can be placed, amended, or canceled any time before 3:50 p.m. Eastern Standard Time (EST). An order cannot be canceled, placed, or amended after 3:50 p.m. EST.
A MOC on the NYSE can be placed, amended, or canceled any time before 3:45 p.m. Eastern Standard Time (EST). An order cannot be canceled, placed, or amended after 3:45 p.m. EST.
As is the case with a Market-on-Open order, MOC activity typically increases during the earnings season, when companies are reporting their quarterly results. If a trader somehow believes the company's earnings will miss expectations, they may use a MOC to sell securities they own. In the same fashion, if they believe earnings will exceed expectations, they may use a MOC to purchase securities just prior to the announcement.
As is the case with all market orders, execution is guaranteed; however, the price paid for the security is not guaranteed.
Related Terms
The term All-or-None order refers to broker instructions to buy or sell a quantity of securities in their entirety, or none at all. If an All-or-None order cannot be executed immediately, it remains open until it is executed or is closed at the end of the trading day.
Moneyzine EditorNovember 6th, 2024
The term Fill-or-Kill refers to broker instructions to buy or sell a security immediately, and in its entirety, or cancel the order. From a practical standpoint, a Fill-or-Kill order specifies the instruction will remain active for several seconds before being filled or canceled.Moneyzine EditorNovember 6th, 2024
The term Good-Til-Canceled refers to broker instructions to buy or sell a security at a fixed price, and the order will remain active until the investor cancels it or it is filled. From a practical standpoint, a Good-Til-Canceled order specifies the instruction will remain active even if it is not filled on the same trading day.Moneyzine EditorJanuary 19th, 2024
The term Immediate-or-Cancel refers to broker instructions to buy or sell a security instantly, or cancel the order. From a practical standpoint, an Immediate-or-Cancel order specifies the instruction will remain active for several seconds before being filled or canceled.Moneyzine EditorNovember 6th, 2024- The term National Best Offer refers to the lowest available ask price, which is a consolidated value from all of the national stock exchanges. The National Best Offer is the lowest price sellers are willing to accept for a security such as a stock.Moneyzine EditorSeptember 20th, 2023
- The term National Best Bid refers to the highest available bid price, which is a consolidated value from all of the national stock exchanges. The National Best Bid is the maximum price buyers are willing to pay for a security such as a stock.Moneyzine EditorSeptember 20th, 2023
The term market order refers to instructions sent to a broker to buy or sell a security immediately at the best available price. Since there are no restrictions on the selling or purchase price of the security, a market order is oftentimes immediately executed.Moneyzine EditorNovember 6th, 2024
The term limit order refers to instructions sent to a broker to buy or sell securities at a specific price or better. Since a limit order is not a market order, there is no guarantee the transaction will occur.Moneyzine EditorNovember 6th, 2024
The term day order refers to broker instructions to buy or sell a security that automatically expires at the end of the trading day if not executed. Unless specified by the investor, the default orders to buy and sell stocks at most brokerage houses are day orders.Moneyzine EditorNovember 6th, 2024- The term One-Triggers-the-Other refers to instructions sent to a broker that consist of a primary order and a secondary order, which becomes active only if the primary order is executed. One-Triggers-the-Other orders can save a trader time, since they can pair together an order to purchase stock at a certain price and sell it at another.Moneyzine EditorSeptember 20th, 2023
- The term One-Cancels-All refers to instructions sent to a broker that consist of several active limit orders; in the event one is filled, the remaining orders are automatically inactivated. One-Cancels-All provides traders with the ability to select from one of several stocks at their desired strike price.Moneyzine EditorNovember 6th, 2024
The term Good-Til-Date refers to instructions sent to a broker that specify how long an order will remain active if it is not fully executed or filled. Good-Til-Date orders are one of several types of Time-in-Force orders, which provide traders with additional flexibility beyond day orders.Moneyzine EditorJanuary 19th, 2024
The term At-the-Opening refers to instructions sent to a broker to buy or sell securities at the beginning of the trading day. If an At-the-Opening order cannot me executed as soon as the market opens, then it will be canceled.Moneyzine EditorNovember 6th, 2024
The term Market-on-Open refers to broker instructions to buy or sell securities at their market price and at the beginning of the trading day. Unless trading is halted on a security, a Market-on-Open order will be executed once trading starts for the day.Moneyzine EditorNovember 6th, 2024
The term At-the-Close refers to broker instructions to buy or sell securities at the very end of the trading day. If an At-the-Close order cannot be executed in the final minutes of trading, then it will be canceled.Moneyzine EditorJanuary 8th, 2024
The term Market-if-Touched refers to broker instructions to buy or sell securities when they reach a price specified by the investor. Market-if-Touched is a conditional order that can be used to both buy and sell securities.Moneyzine EditorJanuary 24th, 2024- The term Trailing If-Touched refers to instructions sent to a broker to buy or sell securities when the market moves in an unfavorable direction and reaches the limit price. Trailing If-Touched orders are conditional orders, which can be used to both buy and sell securities.Moneyzine EditorSeptember 21st, 2023
