Market-On-Close Order (MOC)

A market-on-close order (MOC) is an order to buy or sell a security at the closing price of the market. MOC orders are typically used to close out a position or to establish a position at the end of the day.

MOC orders are executed at the closing price, which is the last price at which a security traded during the trading day. The closing price is often used as a reference point for determining the value of a security.

MOC orders are typically used by investors who want to ensure that they get the best possible price for a security. However, MOC orders can also be used to take advantage of sudden price movements.

For example, an investor who believes that a stock is going to rise in price may place an MOC order to buy the stock at the closing price. If the stock does rise in price, the investor will be able to buy the stock at a lower price than the current market price.

On the other hand, an investor who believes that a stock is going to fall in price may place an MOC order to sell the stock at the closing price. If the stock does fall in price, the investor will be able to sell the stock at a higher price than the current market price.

MOC orders can be used to trade stocks, bonds, options, and other financial instruments. However, it is important to note that MOC orders are not always executed at the closing price. If there is no trading activity at the closing price, the order may be executed at the next available price.

MOC orders can be a useful tool for investors, but it is important to understand the risks involved before using them.