Market on Close (MOC)
Chapters in this video
- 0:00 Trey the trader and the MOC alarm clock
- 1:25 Three problems MOC solves before the bell
- 2:21 The golden rule: participation, not price
- 2:46 Close versus settlement: window versus number
- 3:45 The taxi meter versus city average fare analogy
- 4:51 Lifecycle of Trey's order in three steps
- 5:17 Core takeaway: market order plus a timer
What this video covers
- What a market on close (MOC) order is at its core: a standard market order with a timer set to the end of the session
- Why MOC fills at or near the close within the closing range, not at a price the trader names in advance
- The critical distinction between "the close" (a window of time with a range of prevailing prices) and "the settlement" (a single official number determined by the exchange)
- Why a MOC order guarantees participation in the close but does not lock in the official settlement price
- How the taxi meter analogy works: the meter reading (your actual fill) lands near the city average fare (settlement price) but is rarely identical down to the penny
- The three problems MOC solves for traders: zero overnight exposure, execution at the session's final level instead of an intraday price, and no risk of an unfilled limit order expiring before the bell
- The exact false statement the exam loves to plant: that MOC "locks in the settlement price"
Read the full lesson, free
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