Market entrustment is the most common and easy-to-execute entrustment instruction, which refers to the entrustment form in which customers only ask brokers to buy and sell securities at the current price in the trading market.
There are two advantages to buying and selling securities by adopting the policy of market entrustment: one is the rapidity of trading, because this entrustment does not specify the specific price of buying and selling, and sometimes the transaction can be completed in a few minutes after the entrustment sheet is handed over to the broker. Second, the certainty of the transaction is great. As long as there are no unexpected circumstances, this kind of entrustment can generally be implemented. Market entrustment strategy is generally adopted when customers are eager to buy and sell stocks, and is usually more popular with those customers who are eager to sell stocks in the downward trend. Because when the market share price falls, the speed of the stock price falling is often faster than the speed of the stock price rising, therefore, adopting the market price entrustment strategy can reduce the loss more effectively.
The defect of market entrustment strategy is that when the market price fluctuates greatly and the quoted selling price is high or low, it is easy to buy at a high price or sell at a low price. Therefore, when investors choose this entrustment strategy, they need to weigh the advantages and disadvantages before using it to avoid unnecessary losses. enter