Loading ...What is a ‘Market-On-Close Order – MOC’
A market-on-close order (MOC) is a non-limit market order that is executed as close to the end of the market day as possible. All MOC orders must be submitted by 3:45 p.m. ET on the NYSE and by 3:50 p.m. ET on the Nasdaq, as both of them close at 4 p.m. and neither exchange allows for the modification or cancellation of MOC orders after those times.
BREAKING DOWN ‘Market-On-Close Order – MOC’
Market on close (MOC) means that the investor wants to buy or sell a given financial instrument at the last price that is dealt in the market at the end of the trading day. MOC orders do not specify a target price; some analysts believe that this makes it too easy to take advantage of investors by giving a poor execution.
MOC Execution
An MOC order is a market order that will be executed at or just after the close. It is sometimes used as a limit order qualifier, which means that if a limit order isn’t executed during the trading day, that order will be automatically cancelled and replaced with an MOC order. This ensures that the desired transaction is executed, but it leaves the investor exposed to end of day price moves.
This type of order offer protection to investors by ensuring the purchase or sale of a stock that might move drastically overnight as the result of a scheduled after-hours earnings announcement or an anticipated news story. They also are useful to investors who may not be available to execute an essential transaction at the end of the day. The risk of using an MOC order, however, is that a cluster of orders in thin end-of-day trading can lead to a poor execution.
@Farmboy,
You’re welcome. I thought you wanted after market info.