Marketonclose

A marketonclose order, often abbreviated as MOC, is an order to buy or sell a stock or other security at the closing price of the trading day. These orders are typically placed with a brokerage firm and are executed by the firm's trading desk. The primary purpose of a marketonclose order is to ensure that the trade is executed at the official closing price, which is determined by trading activity in the final minutes of the trading session.

Marketonclose orders are often used by institutional investors who need to buy or sell large blocks of shares and want to avoid impacting the market price during regular trading hours. By executing at the close, they can minimize the potential for price volatility. Retail investors may also use marketonclose orders for similar reasons, or simply to ensure they are trading at the day's established valuation.

It is important to note that a marketonclose order is a market order, meaning it will be executed at the best available price at the time of execution, which in this case is the closing price. There is no guarantee of the specific price, only that it will be the closing price. These orders must be placed before the market closes, typically by a specified cutoff time set by the brokerage firm, which is usually a few minutes before the official close of the exchange.