Contents
MOC is an order type that stands for “Market on Close.” MOC orders are only filled at the end of the trading day, at the closing price.
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Introduction
MOC, or “market-on-close,” is an order type available to investors trading stock and options. It instructs the broker to execute the trade at the end of the day’s trading session, at the closing price.
What is MOC?
MOC is an order type that stands for “Market on Close.” MOC orders are placed during the final few minutes of the trading day and are executed at the closing price. MOC orders are placed with the intention of buying or selling at the end of the day’s trading session.
Market-on-Close (MOC)
Market-on-Close (MOC) is an order to buy or sell a security at the end of the trading day, when the market price is determined by the last trade. It allows traders to initiate a transaction near the end of the trading day, when liquidity is typically low and spread between bid and ask prices is wide.
MOC orders are placed with a broker through a trading platform. The order is matched with other MOC orders from other market participants at the end of the day, and the trade is executed at the best available price. MOC orders can only be placed during regular market hours.
MOC orders are different from limit orders, which are placed with a broker with the intention of buying or selling a security at a specific price. Unlike MOC orders, limit orders may not be executed if there are no other market participants willing to trade at that price.
Limit-on-Close (LOC)
Limit-on-Close (LOC) is an order to buy or sell shares near the market’s close, executed at a specified price (the limit). The LOC order becomes a market order if the shares cannot be traded at the limit price.
For example, assume XYZ stock is trading at $50 in the afternoon. An investor places a limit-on-close order to buy 100 shares of XYZ at $49. If those shares are available when the market closes, then the trade will execute at $49. If not, then the order will remain open and become a market order when XYZ begins trading again.
Fill-or-Kill (FOK)
In trading, Fill-or-kill (FOK) is an order to buy or sell a security that must be executed immediately, and if not, the order is killed or canceled. This order type differs from a standard order in that the entire order must be filled immediately at the specified price, or the trade will not execute at all. This means that if only part of an FOK order can be filled immediately, none of it will execute.
How to place a MOC order?
To place a MOC order, you will need to contact your trading representative and provide them with the following information: the stock you wish to buy or sell, the number of shares, the price you are willing to pay or accept per share, and the time period during which you are willing to hold the position.
NYSE
In order to trade on the New York Stock Exchange (NYSE), you must first find a broker that is a member of the exchange. These members are called “market makers,” and they are responsible for providing liquidity in the market by making two-sided quotes in each stock they trade.
Once you have found a market maker, you will need to place a “market-on-close” (MOC) order. This type of order allows you to buy or sell a stock at the end of the trading day at the price that it is currently trading at.
The advantage of using an MOC order is that you will not have to worry about the stock price fluctuating during the day and you will know exactly how much you will pay for the stock. The downside is that you may not get the best possible price for the stock, as there is typically less liquidity in the market at the end of the day.
If you are looking to buy a specific number of shares of a stock, you can place an MOC order by specifying the number of shares that you would like to buy. Alternatively, if you are looking to buy a certain dollar amount of a stock, you can place an MOC order by specifying the dollar amount that you would like to spend.
NASDAQ
MOC orders are placed with a broker and must be placed before the market open. The order is then entered into the market at the opening bell, and all trades are executed at that time. This type of order is often used by day traders who want to get their orders filled as soon as possible.
What is the difference between a MOC and a limit order?
A MOC order is an order to buy or sell a security at a specified price that must be executed immediately. A limit order is an order to buy or sell a security at a specified price that will only be executed if the security’s price reaches or falls to the specified price.
Can I place a MOC order after hours?
MOC orders can only be placed during regular trading hours.
What are the benefits of using a MOC order?
A MOC order is a “market-on-close” order that is placed with a broker to buy or sell a security at the end of the trading day, when the market closes.
MOC orders are useful for investors who want to ensure that they are getting the best possible price for their trade, and also for those who do not want to have their order exposed to the market during the day.
Another benefit of MOC orders is that they can help to avoid some of the fees associated with other types of orders, such as limit orders.
What are the risks of using a MOC order?
There are a few risks to keep in mind when using a MOC order:
1. Market conditions may change very quickly, and you may not get your order filled at the price you wanted.
2. MOC orders are only good for the day they are placed, so if the stock price gaps up or down overnight, your order may not be filled at all.
3. If you place a MOC order with a limit price and the stock trades at that price during the day, your order may not be filled until the end of the day (when the MOC order expires).
Conclusion
MOC orders are placed with your broker and remain active until the end of the trading day, at which point they are canceled if they have not been executed. A MOC order allows you to specify a limit price at which you are willing to buy or sell a security, and ensures that you will not pay more (or sell for less) than that price.
