Definition
A Market-On-Close order is executed at or near the official closing price of the trading session. Large institutional investors use MOC orders to match benchmark prices. MOC orders must be submitted before a cutoff time (typically 3:50pm ET for NYSE). They contribute to increased volume at market close.
Example
An index fund submits MOC orders to rebalance at closing prices, ensuring its holdings match the index it tracks.
FAQ
What is Market-On-Close (MOC)?
An order to execute at the closing price of the trading day.
Why is Market-On-Close (MOC) important?
Market-On-Close (MOC) helps investors evaluate order types and make more informed decisions.