Stocks

Market On Close Order

A market on close order is a strategy used by institutions to purchase or sell a large number of shares at the market price when the market closes. This method is often utilized when a stock is being added or removed from an index, and the institution needs to make adjustments to an index fund. Additionally, day traders may use this order to close a position at the end of the session, regardless of the price. It can also be used as a way to exit a position on the same day without interrupting a stock's positive momentum. However, there is a risk involved as the stock may reach a desirable selling price, only to drop right before the market closes.

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