Why are market orders blocked for long-dated options?
A market order is an instruction to buy the specified quantity of a scrip irrespective of the price it is available at. Since long-dated options are usually illiquid contracts, market orders are blocked.
A lack of liquidity means that the bid and ask spread in the scrip is very high and can have an immediate adverse effect on your P&L. The bid/ask price could be at a price far from the last traded price or theoretical price of the contracts. Learn how you can use a limit order like a market order in this article.
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