At Best Orders Explained: Definition, Function, and Usage in 2025
Discover how at-best orders operate to secure the most favorable price swiftly in today's dynamic markets. Learn when and why traders use these orders for optimal execution.
Adam Hayes, Ph.D., CFA, brings over 15 years of Wall Street experience as a derivatives trader. With deep expertise in economics and behavioral finance, he holds a master's degree from The New School for Social Research and a Ph.D. in sociology from the University of Wisconsin-Madison. As a CFA charterholder with FINRA Series 7, 55 & 63 licenses, Adam currently conducts research and teaches economic sociology and financial studies at Hebrew University in Jerusalem.
What Does 'At Best' Mean in Trading?
An 'at-best' order directs a broker to execute a buy or sell transaction at the most advantageous price currently available, prioritizing speed of execution. While often synonymous with market orders, at-best orders may grant brokers some discretion to optimize the transaction.
Key Insights
- At-best orders instruct immediate execution at the best available price, without price guarantees.
- They ensure the order is filled if a willing counterparty exists but do not lock in a specific price.
- These orders are ideal for trades needing rapid execution or for investors indifferent to timing but committed to completing the transaction.
How At-Best Orders Work
Applicable to equities, currencies, and other securities, at-best orders aim to secure the optimal price or rate at the moment of execution. They typically execute faster than conditional orders like limit orders but expose traders to price fluctuations, potentially paying more when buying or receiving less when selling than anticipated.
Because at-best orders lack a preset price, investors should exercise caution and use them primarily when immediate execution is more critical than price certainty.
When Is Using an At-Best Order Advantageous?
At-best orders prove useful in two distinct scenarios. First, they benefit traders needing swift execution due to time-sensitive opportunities, such as capitalizing on emerging profitable trades before competitors.
Conversely, long-term investors with no urgency may employ at-best orders to secure assets without concern for immediate price, trusting in substantial appreciation over time. For example, a hedge fund bullish on a 20-year horizon might instruct a broker to purchase at any price, allowing discretionary execution to avoid overpaying for rapid fills.
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