The Ho Chi Minh Stock Exchange has recommended to the State Securities Commission to adopt the market orders (MP) system from June.
The system is associated with continuous order matching which is popular worldwide but has not yet been introduced in the Vietnamese stock market.
An MP is an order to buy or sell a specified number of shares at a price close to the current market price.
Once the order is placed, it will executed at the next best available price or at around the stock's current price.
Generally, this type of order will be executed immediately, but the price at which a market order will be executed is not guaranteed.
It is important for investors to remember that the last-traded price is not necessarily the price at which a market order will be executed.
In fast-moving markets, the price at which a market order will be executed will often vary from the last-traded price or “real time” quote.
The adoption of MP would provide investors more tools to place orders, boosting market liquidity, HoSE said.