Sell at Market

A sell-at-market order – known in German-speaking markets as a "Bestens" order – is an order to sell without a price limit. It is executed at the next available tradable price. Unlike a limit or stop order, it is placed as a market order: the seller does not set a minimum price but accepts whatever price the market currently offers.

How it works

A sell order at market is matched with the best available buy orders, so it is filled at the current bid price. If there is not enough demand at the best bid for the full quantity, the rest of the order is executed at the next, lower prices.

Example: a trader wants to sell 500 shares. The best bid is $40.00, but only for 200 shares; further bids are $39.95 for 200 shares and $39.80 for 100 shares. A sell-at-market order is filled at all three levels, at an average price of $39.94 rather than $40.00.

Advantages and disadvantages

The main advantage is speed: the order is executed almost immediately, which is useful when a position needs to be closed quickly. The drawback is that the seller accepts any price. In less liquid instruments, in fast-moving markets or at the start of a trading session, this can lead to a fill well below the last price displayed – known as slippage. Traders who want to set a minimum price use a limit order instead, at the risk that it is not executed at all.

In forex and CFD trading, a one-click "Sell" order on the trading platform works in much the same way: it is executed at the current bid. The buying counterpart is the buy-at-market order.