Trade execution pricing at M1
You will receive the market price at the time of execution within M1's trading windows. M1 uses a trading window system that aggregates all orders for execution at specific times.
Best execution practices at M1
M1 and all broker-dealers have a duty of best execution. This legally requires brokers to seek the best execution reasonably available for all customer orders. To comply with this requirement, brokers evaluate the orders they receive from all customers in the aggregate and periodically assess which competing markets, market makers, or electronic communications networks (ECNs) offer the most favorable terms of execution.
Order types available on M1
M1 primarily uses market orders executed during the trading windows:
Auto-invest orders: When you deposit funds or have cash available, M1 automatically generates buy orders based on your pie allocations
Manual buy/sell orders: Orders you specifically create to buy or sell securities
Rebalance orders: Generated when you request a portfolio rebalance
Dynamic rebalancing: Automated adjustments that work toward target allocations with each cash flow
M1 does not currently support limit orders, stop-loss orders, or other conditional order types.
How pricing works in practice
Example 1: Morning trading window
8:00 AM ET: You place a buy order for $1,000 of XYZ stock (trading at $100 per share)
9:30 AM ET: During the morning trading window, XYZ is trading at $102
Result: Your order executes at approximately $102 per share, purchasing roughly 9.8 shares
Example 2: Price changes before execution
Monday 4:00 PM ET: You place a sell order for ABC stock (currently $50 per share)
Tuesday 9:30 AM ET: During the next day's trading window, ABC opens at $48 per share
Result: Your order executes at approximately $48 per share, not the $50 price when you placed the order
Understanding potential price differences
There can be differences between the price you see when placing an order and the actual execution price due to:
Market movement between order placement and the trade window
Overnight news or events affecting security prices
Regular market volatility during the trading window
High-volume market activity at market open
Corporate actions (splits, dividends) that occurred since order placement
When placing an order outside market hours, the price you see represents the last closing price, not necessarily the price at which your trade will execute.
Fractional share pricing methodology
Fractional shares at M1 are priced at the same execution price as whole shares:
If you buy $250 of a stock trading at $1,000 per share, you'll receive 0.25 shares at the execution price
All customers (both fractional and whole share buyers) receive the same execution price during a trading window
M1 aggregates all orders and executes them together, then allocates the appropriate portions to each customer
Volatility considerations during trade windows
Market volatility can significantly impact execution prices, especially during the morning trading window:
The market open (9:30 AM ET) often experiences the highest volatility of the trading day
News released overnight can cause significant price movements at market open
Some securities may have wider bid-ask spreads during volatile periods
High-volume trading days (earnings announcements, economic data releases, etc.) may increase price volatility
Yahoo Finance, Google Finance, and other general reporting services report an average quoted price minute by minute.
This content was generated using artificial intelligence and is intended for informational and educational purposes only. While reasonable efforts are made to ensure accuracy, AI-generated outputs may omit key context; and should not be construed as financial, investment, legal, or tax advice. Users should independently verify all information and consult a qualified professional before making any financial decisions.
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