"Above the market" refers to an order to buy or sell at a price higher than the current market price.

"Above the market" refers to an order to buy or sell at a price higher than the current market price. **Stop Order to Buy:** A trader that is waiting for a security to break through a key resistance level may place a stop order to buy at a price higher than the current market price and above the resistance level. The most common above the market order types include limit orders to sell, stop orders to buy, or stop-limit orders to buy. Common above the market order types include limit orders to sell, stop orders to buy, and stop-limit orders to buy. The opposite of above the market orders are below the market orders, which are placed when a trader or investor wishes to purchase a security at a lower price or they want to sell below the current market price.

Above the Market

An all or none (AON) order is an instruction to fill the order completely at the specified price or cancel it.

All or none (AON) is a common type of contingent order that specifies the entire size of the order must be filled and that partial fills will not be accepted. Two hundred shares is a trivial number of shares to purchase when compared with the daily trading volume of Microsoft stock, so it is likely the order will be completed if the shares trade at $100 during the day.
Note that while Microsoft may trade at $100 a share, it would be more difficult to purchase 100,000 shares at $100 using an AON order than it would be to buy 200 shares.
Many portfolio managers use technical analysis, defined as the scrutiny of stock price patterns and trading volume, which may necessitate using an AON order to enter or exit the market. Larger AON orders or those in illiquid markets, however, are often more difficult to fill because the order composes a greater percentage of the number of shares traded daily.
Suppose an investor places an AON order to purchase 200 shares of Microsoft common stock at $100 per share, which means the order is not to be filled unless all 200 shares are purchased at $100. An AON order is considered a contingent order because the trader gives instructions to the broker regarding how the order has to be filled, which affects how long the order remains active. A portfolio manager can place an AON order, which requires the entire order to be bought at the $27 breakout price, thereby allowing the manager to generate profit from the upturn in price.

All Or None (AON)

At-best orders are instructions to fill a transaction at the most desirable price available, and as quickly as possible.

At-best is an instruction attached to an order to fill a transaction at the most desirable price available, and as quickly as possible. At best orders are often market orders but may also entail a bit of discretion on the part of the broker to best execute the order.
At-best orders instruction a broker to fill a buy or sell order at the most advantageous price currently available, and as quickly as possible. In the second example, and with quite the opposite end of the need for speed, certain long-term investors may simply mark an order at-best because they know they want to fill an order, but are unconcerned about price or immediacy. The ultimate price a trader receives for a security is subject to the current market price, so the trader may wind up paying more (for a buy order) or receiving less (for a sell order) than expected. At-best orders guarantee execution when there’s a willing counterparty for the entire order, but it doesn’t guarantee the price.

At Best

An at-the-close order specifies that a trade is to be executed at the close of the market, or as near to the closing price as possible.

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An at-the-close order specifies that a trade is to be executed at the close of the market, or as near to the close time as possible. An at-the-close order is essentially a market order that will only fill at the end of the trading day, at the price available at that time. The New York Stock Exchange (NYSE) fills orders at the end of the day through an auction process where traders submit either market-on-close (MOC) or limit-on-close (LOC) orders. In certain cases, such as exchange auctions or crosses, at-the-close orders are held at the exchange and then filled together at the end of the day, typically causing a significant amount of volume at the close of the day. An at-the-close order specifies that a trade is to be executed at the close of the market, or as near to the close time as possible.

At-the-Close Order

An at-the-opening order is an investor's directive to her broker or brokerage firm to trade a specified security at the very beginning of the trading day. 

An at-the-opening order is an investor's directive to her broker or brokerage firm to buy or sell a specific security in their account at the very beginning of the trading day. An investor might place an at-the-opening order based on something that happened after the market closed on the previous trading day that is expected to affect the stock's opening price on the following trading day. An investor might place an at-the-opening order based on something that happened after the market closed on the previous trading day that is expected to affect the stock's opening price on the following trading day. Conversely, if bad news is made public before the trading day begins, the investor may submit an at-the-opening sell order to step out of a stock before a possible stampede out of the shares, and thus minimize any losses from the prior day's close. An indication of the opening price of a stock may be given by pre-market trading activity, if applicable, particularly if important news such as a quarterly earnings report or announcement of a significant corporate action hits the tape before the market officially opens in the morning.

At-The-Opening Order

An at-the-market order buys or sells a stock or futures contract at the prevailing market bid or ask price at the time it gets processed.

An at-the-market order buys or sells a stock (or a futures contract) at the prevailing market bid or ask price at the time it gets processed. If received after regular market trading hours, this order type gets executed as soon as the market reopens.
At-the-market is an instruction given to a broker to place a market order to buy or sell securities at the prevailing market bid or ask price at the time it is received. The less liquid the investment (think small-cap stocks in obscure or troubled companies), the less reliable the market order.
Any time a trader seeks to execute a market order, the trader is willing to buy at the asking price or sell at the bid price. An at-the-market order is a type of market order, an instruction by an investor to a broker to buy or sell an asset at the best available price in the current financial market. Limit orders provide more control over prices, but they may not guarantee the execution of the order if the set limit price isn't met.
At-the-market instructs a broker to execute an order to buy or sell promptly.

At-the-Market

Away-from-the-market order is a limit order to buy at a price lower than the current market or sell at a price higher than the current market. 

3 Order Types: Market, Limit and Stop Orders

Table of Contents
Away-from-the-Market
Understanding the Concept
Limit Orders The expression applies in two basic types of scenarios:
1.  if the bid on a limit order is lower than the current market price, then an away-from-the-market order issues instructions to buy at a price lower than the current market price
2.  if the ask on a limit order is higher than the current market price, then an away-from-the-market order issues instructions to sell at a price higher than the current market price. With an away-from-the-market order to buy, the price is lower than the market quote while with an away-from-the-market order to sell, it's higher than the current market price. With a buy limit order the price is lower than the current market price while with a sell limit order, the price is higher. An away-from-the-market order is a type of limit order for a security, in which the amount stipulated for execution differs from the security's current price or quote.

Away-from-the-Market

A basket trade is a type of order used by investment firms and big institutional traders to buy or sell a group of securities simultaneously.

A basket trade is a type of order used by investment firms and big institutional traders to buy or sell a group of securities simultaneously. As cash moves in and out of the fund, large baskets of securities must be bought or sold simultaneously, so that price movements for each security do not alter the portfolio allocation.
To consider how a basket trade is beneficial to an investment fund, suppose an index fund aims to track its target index by holding most or all the securities of the index. If it were not possible to execute a basket trade on all of these securities, then the rapid price movements of the securities would prevent the index fund from holding the securities in the correct proportions. A basket trade is a portfolio management strategy used by institutional investors to purchase or sell a large number of securities at the same time. A basket trade is a type of order used by investment firms and big institutional traders to buy or sell a group of securities simultaneously.

Basket Trade

Batch trading refers to an accumulation of orders that are executed simultaneously.

Batch trading refers to an accumulation of orders that are executed simultaneously. To qualify for an opening market batch trade, a security’s order price must be matched with an appropriate market counterpart at the time of the market’s open. Limit orders with specified prices set by buyers and stop orders with specified prices set by sellers can also be included if their order prices match the opening market price. Batch trading is a concept that is used only once per day in the U.S. market to process orders that have accumulated during non-market hours. In the U.S., batch trading is only allowed at the market open and pertains solely to orders placed during non-market hours.

Batch Trading

"Below the market" can refer to any type of purchase or investment that is made at a below the market price.

"Below the market" can refer to any type of order price, purchase, or investment that is made at a price below the market price. In investment trading, a below-the-market order is a limit order to buy or sell a security at a price that is lower than the current market price. The opposite of below the market is above the market, where a price or order is higher than the current market price. In a below-the-market order, an investor who wants to try to achieve a better price or position may enter an order to buy securities at a price that is below the market. Below the market refers to a price or order that is lower than the current market price.

Below the Market

The term "bid and ask" refers to a two-way price quotation that indicates the best price at which a security can be sold and bought at a given point in time. 

The term "bid and ask" (also known as "bid and offer") refers to a two-way price quotation that indicates the best potential price at which a security can be sold and bought at a given point in time. The spread between the bid and ask prices is determined by the overall level of trading activity in the security, with higher activity leading to narrow bid-ask spreads and vice versa. Blue-chip companies that constitute the Dow Jones Industrial Average may have a bid-ask spread of only a few cents, while a small-cap stock that trades less than 10,000 shares a day may have a bid-ask spread of 50 cents or more. The bid-ask spread can widen dramatically during periods of illiquidity or market turmoil, since traders will not be willing to pay a price beyond a certain threshold, and sellers may not be willing to accept prices below a certain level. For example, if the current price quotation for the stock of ABC Corp. is $10.50 / $10.55, investor X, who is looking to buy A at the current market price, would pay $10.55, while investor Y, who wishes to sell ABC shares at the current market price, would receive $10.50.

Bid and Ask

Bidding up is the act of increasing the price an investor is willing to pay for a security.

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Bidding up is the act of increasing the price an investor is willing to pay for a security. Because sellers are unwilling to accept limit price and hold out for a better price, buyers who use limit orders inadvertently put upward pressure on the price. When an investor places a buy limit order at a specified price, that investor is saying they are not willing to pay any more than the price limit for a share. While it is unlikely that a single investor increasing limit order prices will put significant upward pressure on price, if enough investors follow a similar strategy, they may have an effect. If the price of a stock is rapidly increasing, sellers are less likely to be willing to sell shares at the limit price if they can fetch more from other buyers.

Bidding Up Securities

A box-top order is an order to buy or sell the best market price. 

A box-top order is a buy or sell order made at the best market price. For example, if a trader entered a box-top order to buy 1,000 shares at the current market price of $50, and only half of the shares are traded at that price, then a buy limit order is placed for the other 500 shares. A limit order is an order placed to execute a buy or sell transaction at a set number of shares and at a specified limit price or better. The advantage of a limit order is that it guarantees a trade will be made at a particular price; however, it’s possible the order will not get executed if the limit price isn’t reached. If the order cannot be completely filled, a limit order is placed for the remaining shares at the price at which the filled portion was executed.

Box-Top Order

Bracketed buy order refers to a buy order that has a sell limit order and a sell stop order attached.

A bracketed buy order refers to a buy order that has a sell limit order and a sell stop order attached. The order includes a buy order, a sell limit order that is priced above the buy order, and a stop-loss order that is priced below the buy order. The sell limit order gets priced above the buy order and the sell stop order, or stop-loss order, gets priced below the buy order. For an example of a bracketed buy order, suppose that an investor places a buy order for 100 shares of ABC at $50, along with a sell limit order at $55 and a sell stop order at $45. A bracketed buy order refers to a buy order that has a sell limit order and a sell stop order attached.

Bracketed Buy Order

Bracketed sell order is a short sell order that is accompanied by a conditional buy order above and a buy limit order below the initial sell order. 

A bracketed sell order is a short sell order that is accompanied (or "bracketed") by a conditional buy order above the entry price of the sell order and a buy limit order below the entry price of the sell order. A bracketed sell order has three components: a short sell order at a specified price, a buy stop order above the sell order's entry price, and a buy limit order below the entry price. A bracketed sell order is a short sell order that is accompanied by a conditional buy order above and a buy limit order below the entry price of the sell order. Both types of orders are based on the ability to specify a maximum range for gains and losses, but a bracketed buy order is somewhat simplified since it involves a buy limit order with a limit sell order above the buying price to guarantee a profit and a stop-loss order below the buying price to manage losses. They then bracket that order with a buy order at a specified price above the short sell price and a buy limit order at a specified price below the short sell price.

Bracketed Sell Order

A buy limit order is an order to purchase an asset at or below a specified price. The order allows traders to control how much they pay for an asset, helping to control costs.

Table of Contents
What Is a Buy Limit Order? Therefore, the price will often need to completely clear the buy limit order price level in order for the buy limit order to fill. Said another way, by using a buy limit order the investor is guaranteed to pay the buy limit order price or better, but it is not guaranteed that the order will be filled. They could use a market order and buy the stock at $125.26 (assuming the offer stays the same, and there are enough shares at that price to fill the market buy order), or they could use a buy limit at any price of $125.25 or below. If the price moves down to the buy limit price, and a seller transacts with the order (the buy limit order is filled), the investor will have bought at the bid, and thus avoided paying the spread.

Buy Limit Order

Buyers/Sellers on balance describe a predominance of either buying or selling behavior at a given time, sometimes leading to order imbalances.

Buyers or sellers "on balance" describes an order imbalance in a market at a specific point of time. However, in some situations where trading cannot take place, buyers-on-balance or sellers-on-balance conditions can persist until the resumption of trading provides enough market liquidity to bring trades back into balance. If a current market or issue has sellers on balance, more traders have entered sell orders than buy orders, causing an order imbalance. Unless imbalances become so severe that the exchange suspends trading, a typical situation fitting the description of buyers or sellers on balance most likely would occur before the market opens or at the expiration of an option contract, when circumstances impede liquidity. Conversely, if a market or issue has buyers on balance, more traders have entered buy orders than sell orders.

Buyers/Sellers On Balance

A buy-minus order is a type of order in which a client instructs a broker to purchase a stock at a figure below the current market price.

A buy-minus order is a type of order in which a client instructs a broker to purchase a stock at a figure below the current market price. A limit order can be either a buy limit order (an order to purchase a stock at the limit price or lower) or a sell limit order (an order to sell a stock at the limit price or a higher one). A buy minus order refers to specific broker instructions to purchase a stock at a price that is below the current market; it is intended to take advantage of a short-term decline in a stock's price. A buy-minus order involves the execution of an order to purchase a specific number of shares of stock (or other securities) with the stipulation that the order to buy is not executed unless certain market conditions are met. A buy-minus order is a type of order in which a client instructs a broker to purchase a stock at a figure below the current market price.

Buy-Minus

A buy stop order directs to an order in which a market buy order is placed on a security once it hits a pre-determined strike price.

A buy stop order instructs a broker to purchase a security when it reaches a pre-specified price. The investor can protect against a rise in share price buy placing a buy stop order to cover the short position at a price that limits losses. To hedge against the risk of the stock’s movement in the opposite direction i.e., an increase of its price, the trader places a buy stop order that triggers a buy position if ABC’s price increase. A buy stop order is an order to purchase a security only once the price of the security reaches the specified stop price. The short seller can place their buy stop at a stop price, or strike price either lower or higher than the point at which they opened their short position.

Buy Stop Order

Buy to cover is a trade intended to close out an existing short position. Short sales involve selling borrowed shares that must eventually be repaid.

To profit from their thesis, the trader borrows 100 shares of ABC from a broker and sells them in the open market at the current price of $100.
Subsequently, ABC's stock falls to $90 and the trader places a buy to cover order to buy ABC's shares at the new price and return the 100 shares they borrowed back to the broker. A short seller bets on a stock price going down and seeks to buy the shares back at a lower price than the original short sale price. When an investor is selling short and the market value of the underlying security has risen above the short-selling price, the proceeds from the earlier short sale would be less than what is needed to buy it back. Investors receive margin calls when the market value of the underlying security is moving against the positions they have taken in margin trades, namely the decline of security values when buying on margin, and the rise of security values when selling short.

Buy to Cover

A canceled order is a previously submitted order to buy or sell a security that gets cancelled before it executes on an exchange.

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A canceled order is a previously submitted order to buy or sell a security that gets canceled before it executes on an exchange. A one-cancels-the-other (OCO) order consists of two dependent orders; if one order executes the other order is immediately canceled. For example, if a stock was trading in a range between $40 and $60, a trader could place an OCO with a buy order just above the trading range and a sell order slightly below the trading range. A canceled order is a previously submitted order to buy or sell a security that gets canceled before it executes on an exchange. The NYSE allows investors to cancel orders between 6:30 a.m. and 3:58 p.m. EST. Other NYSE markets, such as NYSE American Equities and NYSE Arca Equities, also allow order cancellations in extended trading hours.

Canceled Order

A cancel former order (CFO) is a type of trade order that directs a broker to cancel a previously issued order.

If an investor issues a CFO request and then immediately produces a new order for that same security, it is possible for the second order to be executed before the CFO is processed. A cancel former order (CFO) is an order that replaces or cancels a previously sent order that was still in effect. Once the CFO has been executed, you issue a market order to purchase XYZ shares at their current market price. Eager to buy in at the current market price, you issue a CFO request to cancel your previous order.

Cancel Former Order (CFO)

A closing offset order is a day limit order that allows the purchase or sale of a stock to offset an imbalance at market close.

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A closing offset (CO) order is a type of limit order that a trader can place during the trading day for execution at market close for that day. A CO order is a particular type of limit-on-close (LOC) order and may be contrasted with limit-on-open orders or market-on-close (or open) orders which do not specify a price. A closing offset (CO) order is a type of limit order that a trader can place during the trading day for execution at market close for that day. A closing offset (CO) order is a special order type used to offset any remaining open auction imbalances that exist at the closing bell. A CO order is essentially a limit-on-close (LOC) order that was introduced by the NYSE in 2009 to alleviate end-of-day order imbalances.

Closing Offset (CO) Order

A conditional order is an order that includes one or more specified criteria or limitations on its execution.

A conditional order is an order that includes one or more specified criteria. The most common type of conditional order is a limit order, which specifies a fixed price above (or below) which a purchase (or sale) cannot take place, although other conditions can exist aside from price, such as how long an order is enforced (known as time-in-force), or if another order must be completed first before the new order is triggered. Specific types of conditional orders like these include one-cancels-other (OCO) orders or order-sends-order (OSO). In an OCO order, multiple conditional orders can be placed with other orders canceled once one has been executed. Limit, stop, stop-limit, and contingent orders are all examples of conditional orders.

Conditional Order

A contingency order is one that is executed only when certain conditions of the security being traded, or another security, have been fulfilled.

A contingency order is a buy or sell order that is executed from a broker's trading platform only when specific, trader-defined conditions have been met. To research the variety of order types available, you can review our comparative research in this article, _Top Technical Analysis Tools for Traders._ Or check out Investopedia's reviews on brokers and trading platforms included in the following helpful rankings:
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Best for International Trading A stop-loss order can also be viewed as a contingency order, because it does not become a market order until the price of the security being sold reaches a predetermined level. The terms contingent order and conditional order are often used interchangeably with contingency order. Under that definition, any order other than a market order would be considered a contingency order.

Contingency Order

A contingent order is an order that is linked to, and requires, the execution of another event. The contingent order becomes live or is executed if the event occurs.

A contingent order is an order that is linked to, and requires, the execution of another event. But, if the stop loss and target are contingent upon the initial position, it knows that if the stop loss or target is reached, that order closes the position and the other order can be canceled because the initial position no longer exists. If the stop loss and target are sent out contingent on the buy order being filled, the trader knows that whether the stock moves up or down they have orders out to capture profit and control risk. For example, a trader may make an options buy order contingent on being filled on a stock buy order. On a bracket order (which creates contingent orders) that would mean placing the initial order.

Contingent Order

Continuous trading is a method for transacting security orders and involves the immediate execution of orders upon receipt by market makers.

Continuous trading is a method for transacting security orders and involves the immediate execution of orders upon receipt by market makers and specialists. Therefore, for these orders to be accepted in the market for continuous trading, the price for execution must reach the prevailing market price to be considered by a market maker. Thus, while the market is offering continuous trading, a conditional order from an investor will only be executed in the continuous trading market when the price is available. Thus, a batch order of trades is executed each day at the market’s open with orders that have been placed for market maker processing during the market’s off hours. The market making process requires a market maker to buy securities from a seller and sell securities to a buyer, matching interested buyers and sellers in the open market.

Continuous Trading

A day order is an order to buy or sell a security at a specific price that automatically expires if it is not executed on the day the order was placed.

A day order is a stipulation placed on an order to a broker to execute a trade at a specific price that expires at the end of the trading day if it is not completed. Two examples of other duration-based orders are the good 'til canceled (GTC) order which remains active until it is manually canceled, and the immediate or cancel (IOC) order, which fills all or part of an order immediately and cancels the remaining part of the order if it cannot be fulfilled. Day orders can be particularly useful when used to order a security at a specific price point, so that the trader does not need to monitor the security for the rest of the day waiting for the right time to execute the order. A day order can be a limit order to buy or sell a security, but its duration is limited to the remainder of that trading day. If an investor makes a day order to sell a certain security and the security experiences an unforeseen price drop, the order may be executed before the investor becomes aware of the situation, leaving the investor with bigger loss than was expected.

Day Order

Direct access trading is a system that allows a client to trade directly with another client, market maker or specialist without using a middleman.

Direct access trading (DAT) is a technology system that enables stock traders to trade directly with another client, a market maker on Nasdaq, or a specialist on the floor of an exchange, all without broker interference. Before the rise of DAT systems, traders would have to place orders to buy or sell stock through a traditional brokerage firm, which could cause problems with delays in trade execution and the inability to get the best market price available. Direct access trading (DAT) is a technology system that enables stock traders to trade directly with another client, a market maker on Nasdaq, or a specialist on the floor of an exchange, all without broker interference. DATs also give traders the ability to trade on electronic communications networks (ECNs), completely electronic stock exchanges in which orders are executed directly from the trader’s DAT and transmitted to the ECN within a fraction of a second. With most DAT systems, traders can choose to send their orders to any specific market maker, specialist or ECN, whereas online retail brokerage firms usually work with their own in-house specialists.

Direct Access Trading (DAT)

Directed order flow occurs when a customer's order to buy or sell securities requires specific instructions for trading venue execution.

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Directed order flow occurs when a customer's order to buy or sell securities is given specific instructions for the order to be routed to a particular exchange or venue for execution. The choice of exchange or venue for order execution may be left up to the end customer, or else left up to the broker or dealer.
Payment for order flow is a way of bidding for directed order flow, which typically benefits brokers.
A directed order is so named because the client directs the order routing for execution. Directed order flow occurs when a customer's order to buy or sell securities is given specific instructions for the order to be routed to a particular exchange or venue for execution. Directed order flow occurs when a customer's order to buy or sell securities is given specific instructions for the order to be routed to a particular exchange or venue for execution. In reality, today's techniques to achieve best-execution for trade orders have become less about directed, and non-directed order flows, and more about whether an order is deemed aggressive or passive.

Directed Order

A discretionary order is a conditional order placed with some latitude for execution.

A discretionary order is an order condition that gives a broker some latitude for its execution in terms of timing, price, and so on. If an investor placed a buy limit order of $20 on a stock currently priced at $22 with a 10 cent discretionary amount, then it means they seek to buy the security at $20 but would permit a buy order price of $20 to $20.10. Thus, if a broker is a given a limit order with discretion, the broker may choose to change the limit price in response to market activity and liquidity when the order is received. If an investor places a sell order at $24 on a stock currently trading at $22 with a 10 cent discretionary amount, then the order could be submitted and executed at a selling price of $23.90 or higher. A discretionary order is an order condition that gives a broker some latitude for its execution in terms of timing, price, and so on.

Discretionary Order

Do not reduce (DNR) order is a trade order with a specified price that does not get adjusted when the underlying security pays a cash dividend.

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A do not reduce (DNR) order is a type of order with a specified price that does not get adjusted when the underlying security pays a cash dividend. A do not reduce order (DNR) keeps the specified price on an order, instead of the order price being reduced by the amount of a cash dividend on the ex-dividend date. Regardless of what price the stock actually opens at, unless the customer has specified the limit buy order as a do-not-reduce (DNR) order, then the buy price on the order will be adjusted to $204.23 ($205 - $0.77). If an investor does not request DNR then the specified order price on their GTC order will be reduced on the company’s ex-dividend date. A do not reduce (DNR) order is a type of order with a specified price that does not get adjusted when the underlying security pays a cash dividend.

Do Not Reduce (DNR)

EDGX Exchange is a U.S. equities exchange operated by CBOE U.S. Equities.

EDGX Exchange is a U.S. equities exchange operated by CBOE U.S. Equities. CBOE Global Markets parent company, CBOE Holdings, enables trading in multiple asset classes and regions, including options, futures, U.S. and European equities, exchange-traded funds (ETF​​​​), and multi-asset volatility and global foreign exchange (FX) products. CBOE Global Markets acquired Bats Global Markets and now operates the BZX Exchange and BYX Exchange along with EDGX and EDGA. CBOE Global Markets acquired Bats Global Markets and now operates the BZX Exchange and BYX Exchange along with EDGX and EDGA. CBOE Holdings Inc. owns the Chicago Board Options Exchange, the Bats exchanges, CBOE Futures Exchange (CFE).

EDGX

An end of day order is a buy or sell order requested by an investor that is only open until the end of the day.

An end of day order is a buy or sell order for securities requested by an investor that is only open until the end of the day. An end of day order is any type of order for stocks or other assets made in a brokerage account that has a time limit set on it for the end of the given trading session for that day. With either an end of day order or good ‘til canceled order, investors can choose from the following options:
Market order: An end of day order is a buy or sell order for securities requested by an investor that is only open until the end of the day. If the end of day order is not filled by the end of the trading session, the order will be canceled.

End of Day Order

Exchange distribution is a technique for selling large orders of shares of stock, by merging multiple buy orders and posting as one transaction.

The term "exchange distribution" refers to the sale of a large block of stock or another security that is reported as a large, single transaction immediately after the order is complete. Brokers charge an extra commission to the seller for distributing orders, reflecting the greater complexity of the transaction.
At least 10,000 shares on a non-penny stock or a bond transaction totaling $200,000 or more count as an exchange distribution.
Exchange distributions typically originate from massive hedge funds and institutions because they're usually too large for individual investors to initiate.
An exchange distribution becomes necessary when an individual or party who holds a significant position in a particular security wants to sell the shares as one transaction rather than splitting the request into multiple trades. An exchange distribution is the sale of a large block of stock or another security reported as a large, single transaction. If brokers execute an exchange distribution for large buy orders of the same security, there must be a term that describes large buy orders. Buyers often have an incentive to participate in purchasing a portion of a large block of shares because they usually do not have to pay a commission on the transaction executed by a broker.

Exchange Distribution

Execution is the completion of an order to buy or sell a security in the market.

Execution is the completion of a buy or sell order for a security. In addition, when a broker, while executing an order from an investor using a limit order, provides the execution at a better price than the public quotes, that broker must report the details of these better prices.﻿﻿ With these rules in place, it is much easier to determine which brokers get the best prices and which ones use them only as a marketing pitch. If an institutional trader places a sizable order on a public exchange, it is visible in the order book and other investors may discover that there is a large buy or sell order getting executed which could push the price of the stock lower. If the order placed is a market order or an order which can be converted into a market order relatively quickly, then the chances that it will be settled at the desired price are high. The SEC has taken steps to ensure that investors get the best execution, with rules forcing brokers to report the quality of executions on a stock-by-stock basis, including how market orders are executed and what the execution price is compared to the public quote's effective spreads.

Execution

A firm order is an investor's buy or sell order that remains open indefinitely. Firm order also refers to orders placed by proprietary trading desks.

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What Is a Firm Order? A firm order may also refer to an order initiated by a proprietary trading desk for their own account, where the order is coming from a firm. A stop-loss order is a sell order at a specified price below the current market price, or above the current price if in a short position. Just because the order is GTC or firm doesn't mean the investor can't log into their trading account and cancel or revise the order. A firm order from an investor may also be referred to as a good ‘til canceled (GTC) order.

Firm Order

Fill or kill is a type of equity order that requires immediate and complete execution of a trade or its cancellation, and is typical of large orders.

A FOK is essentially an all-or-none (AON) and immediate-or-cancel order (IOC) combined.
A Fill or Kill (FOK) order is an order that is directed to be executed immediately at the market or a specified price or canceled if not filled. Other methods of instructing a brokerage on the time frame in which a trade is to be executed include immediate or cancel (IOC) which means to fill all or part of the order immediately, then cancel any part that cannot be filled, and good ‘til canceled (GTC), which keeps an order open until it is able to be filled at a specified price.
Assume an investor wants to purchase 1 million shares of Stock XYZ at $15 per share. If a broker has more than a million shares in its inventory and would only like to sell 700,000 shares at the $15 price, the order would be killed. A FOK order combines an all-or-none (AON) specification indicating it must be filled entirely with an immediate-or-cancel (IOC) timeframe.

Fill Or Kill (FOK)

Good this week (GTW) is a type of market order in which the order remains active until the end of the week in which it is issued.

Good this week (GTW) is a type of order that remains active until the end of the week in which it is issued. As a full-service client, you have access to several order types, including market orders, limit orders, GTW orders, and GTC orders. More common order types include market orders, limit orders, and Good 'Til Canceled (GTC) orders. Instead, most brokers offer market orders, limit orders, and Good 'Til Canceled (GTC) orders. You remember that GTW orders would act as market orders but would last until the end of the week you place the trade.

Good This Week (GTW)

Good this month refers to an order which will expire at the end of the month in which it was placed unless it is executed or cancelled.

Dash for Cash: Monthly Market Impact of Institutional Liquidity Needs

Good this month orders are limit orders that will be automatically canceled if not executed by the end of the month in which the orders were placed. Good this month orders are limit orders that will be automatically canceled if not executed by the end of the month in which the orders were placed. Good this month (GTM) orders are limit orders that are held open until the end of the month in which they are placed. Day orders are good only for the day in question.
Good until canceled (GTC) orders are left open indefinitely, exposing the investor to significant risk if they do not attach a time limitation to the order. Good this month orders are of use to investors seeking to capitalize on end-of-month price increases.

Good This Month (GTM)

Good through is a type of limit order used to buy or sell a security or commodity at a certain price for a specified period of time.

Good through is a type of limit order used to buy or sell a security or asset at a certain price for a specified period of time. A day order is another example of an order specification where the order remains active, good through the end of the trading day. Typically, a good through order is a stop loss or limit order that remains valid until the expiration date passes unless the order is executed, canceled, or amended. Good through is a time-frame designation set by an investor or trader that allows an order to remain active for a set period of time, or until canceled. Using this order type means the investor does not need to set a reminder to manually cancel the order before an expected increase in volatility.

Good Through

A good 'til canceled (GTC) order is a buy or sell order that remains active until it is either executed or until the investor cancels it.

Good ’til canceled (GTC) describes a type of order that an investor may place to buy or sell a security that remains active until either the order is filled or the investor cancels it. If the price per share gaps up or down between trading days, skipping over the limit price on the GTC order, the order will complete at a price more favorable to the investor who placed the order, i.e., at a higher rate for GTC sell orders and a lower rate for GTC buy orders.
Several exchanges, including the NYSE and NASDAQ no longer accept GTC orders, including stop orders.﻿﻿ Investors may also place GTC orders as stop orders, which set sell orders at prices below the market price and buy orders above the market price to limit losses. The risk of a GTC order comes when a day of extreme volatility pushes the price past the limit price of the GTC order before quickly snapping back. Investors usually place GTC orders because they either want to buy at a price lower than the current trading level or sell at a price higher than the current trading level.

Good 'Til Canceled (GTC)

A hard stop is a price level that, if reached, will trigger an order to sell an underlying security.

A hard stop is more of a concept than an actual order type. Trailing stop loss orders are a common alternative to hard stop orders, where the stop loss price point is reset on a regular basis to account for an increase in the underlying stock price. A hard stop is one that is inflexible, unlike a mental stop, where a trader may have a price in mind, but really does not take action until they see their stop price traded--at which time they may or may not follow their expected rule to sell. Many traders will choose to set a hard stop once the price of their investment becomes profitable and will leave the order active until it reaches the price target. A hard stop is placed in advance of an adverse move and remains active until the price of the underlying security moves beyond the stop level.

Hard Stop

A held order is a market order that requires prompt execution for an immediate fill.

A held order is a market order that requires prompt execution for an immediate fill. For example, if the bid-ask market spread in Apple Inc. (AAPL) is $156.90 / $157.00 and a trader receives a held order to purchase 100 shares, they would place a buy order at the offer price of $157.00, which would be executed immediately under normal market conditions. A held order is given to a broker for prompt execution and an immediate fill, such as with a market order. A held order is a market order that requires prompt execution for an immediate fill. A not-held order, on the other hand, gives some discretion to the broker to work the order to try to find a better price.

Held Order

Iceberg orders are large single orders that are divided into smaller limit orders for the purpose of hiding the actual order quantity.

Iceberg orders are large single orders that have been divided into smaller limit orders, usually through the use of an automated program, for the purpose of hiding the actual order quantity. If traders have already placed orders similar to the iceberg order, then they are executed after the visible portion of an iceberg order. Previous research has indicated that traders tend to place order types similar to the amount and pattern of iceberg orders, thereby increasing liquidity and minimizing impact of the iceberg order on overall trading. Since this could be the sign of an iceberg order, the day trader may decide to short sell the stock due to the strong selling pressure from the constant stream of limit sell orders.

Iceberg Order

Imbalance only (IO) orders are limit orders that will execute only during the opening cross and closing cross on the Nasdaq.

Imbalance only (IO) orders are limit orders that provide liquidity during the opening and closing rotation on the Nasdaq stock exchange. During the closing cross, short sale IO orders are executed on a downtick only if the closing price is better than the best bid; these orders will not participate if the closing price is at or below the best bid. IO buy orders only execute at or above the 9:30 a.m. or 4 p.m. bid price, while IO sell orders only execute at or below the offer or ask price. Market participants cannot update or cancel IO orders for the opening cross after 9:28 a.m., or update or cancel IO orders for the closing cross after 3:58 p.m. IO orders must necessarily be limit orders; market IO orders are not permitted.

Imbalance Only (IO) Orders

An immediate or cancel order (IOC) tries to fill as much of an order as possible in the next few seconds and then cancels any balance.

An immediate or cancel order (IOC) is an order to buy or sell a security that attempts to execute all or part immediately and then cancels any unfilled portion of the order. An IOC limit order is entered at a specific price, whereas an IOC market order has no price attached and transacts with the best offer price for a buy and best bid price for a sell. An immediate or cancel order (IOC) is an order to buy or sell a security that attempts to execute all or part immediately and then cancels any unfilled portion of the order. IOC orders differ from other duration orders in that they only require a partial fill, whereas both FOK and AON orders must be filled in their entirety or canceled. Let's assume another investor places an IOC limit order to buy 1,000 shares of Apple at $169 around the market open when the stock is currently offered at $170.

Immediate Or Cancel Order (IOC)

Kill means to cancel an unfulfilled trade.

A kill is a request to cancel a trade between its placement and its fulfillment. Depending on the exchange and the order type specified, fill or kill orders take place in a single large transaction that either fills the entire order or as much of the order as possible. Since a successful kill order requires a trader to submit it before the order gets fulfilled, traders have much more leeway on timing for placements that delay fulfillment or which place restrictions on fulfillment. Investors may wish to kill trades because of market movements that change the potential profitability of a trade, because they placed the order accidentally, or simply because they changed their mind after placing the trade. For example, some traders who wish to fulfill a large order at a specific price will issue a fill or kill order.

Kill

Last-sale reporting is the submission of details about the quantity and price of a stock trade to Nasdaq within 90 seconds of the trade's close.

2010. Standards of Commercial Honor and Principles of Trade

Approval of NASDAQ Stock Market LLC Exchange Application

The term last-sale reporting refers to a Nasdaq requirement that states dealers must submit details to the stock market within 90 seconds of any completed transaction. Since Nasdaq’s trades take place electronically over a network rather than on the trading floor, market makers are responsible for delivering trade data directly to the exchange. The 90-second window for trade reporting required by Nasdaq fulfills the exchange’s regulatory obligation for real-time trade reporting. The NYSE employs specific firms as market makers to work the floor of the exchange, reporting all bid and ask prices in a timely manner, setting opening prices, and acting as a catalyst for trades.

Last-Sale Reporting

A limit-on-close (LOC) order is a limit order that is designated for execution at the market close. 

Behind the Scenes — An Insider’s Guide to the NYSE Closing Auction

A limit-on-close (LOC) order is a limit order that is designated for execution at the market close. They could use a LOC to exit trades as well, but, because it is a limit order, the order is not guaranteed to fill, which means the position could remain open after the market closes.
A LOC order must be submitted by a specified time, such as 3:50 p.m. on the NYSE or 3:58 p.m. EST on NASDAQ.LOC A LOC order will only be executed if the closing price matches the limit order price or better. On the flip side, a limit order doesn't guarantee execution because the price must meet or be better than the limit order price. A LOC order can be compared with a limit-on-open (LOO) order or a market-on-close (MOC) order.

Limit-On-Close (LOC) Order

A limit-on-open order is a type of limit order to buy or sell shares at the market open if the market price meets the limit condition.

A limit-on-open (LOO) order is a type of limit order to buy or sell shares at the market open if the market price meets the limit's condition. A LOO order can be compared with a limit-on-close (LOC) order and contrasted with a market-on-open (MOO) order, which is a non-limit market order that is executed at or just after the opening of a stock exchange. A limit-on-open (LOO) order is a type of limit order to buy or sell shares at the market open if the market price meets the limit's condition. A limit-on-open (LOO) order is a limit order that is to be executed specifically at the market open. A LOO order is a conditional limit order that investors can use when seeking to bet on a security’s price at the open of trading.

Limit-on-Open (LOO) Order

A limit order book is a record of outstanding limit orders, which are buy and sell orders that are to be executed at pre-specified prices or better.

The Nasdaq Stock Market Form I—Exhibit E

A limit order book is a record of outstanding limit orders maintained by the security specialist who works at the exchange. A buy limit order is an order to buy at a preset price or lower while a sell limit order is an order to sell a security at a pre-specified price or higher. 2:43
The specialist running the limit order book has the responsibility to guarantee that the top priority order is executed before other orders in the book, and before other orders at an equal or worse price held or submitted by other traders on the floor, such as floor brokers and market makers. As buy and sell limit orders for the security are given, the specialist keeps a record of all of these orders in the order book. As buy and sell limit orders for the security are given, the specialist keeps a record of all of these orders in the order book.

Limit Order Book

A long position conveys bullish intent as an investor will purchase the security with the hope that it will increase in value.

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What Is a Long Position? In options, being long can refer either to outright ownership of an asset or being the holder of an option on the asset.
Being long on a stock or bond investment is a measurement of time. The trader can hold either a long call or a long put option, depending on the outlook for the underlying asset of the option contract. Conversely, an investor who expects an asset’s price to fall will be long on a put option—and maintain the right to sell the asset at a certain price. At the time of expiry, if MSFT drops below the strike price minus the premium paid ($75 - $2.15), Jane will exercise the long put option to sell her 100 MSFT shares for the strike price of $75.

Long Position

A manual trader makes their own buy and sell decisions and enters trades into a trading system by hand without the use of computerized algorithms.

A manual trader enters trades into a trading system without using computerized algorithms that enable automated order entry. A manual trader enters trades into a trading system without using computerized algorithms that enable automated order entry. Also, manual traders may be more susceptible to trading on emotion compared to a trader relying strictly on a trading program. Such a trader must be meticulous in their monitoring of trades to avoid mistakes as simple as buying when they intended to sell and ensuring that trades are executed using the right order types, at the correct prices and in the correct quantities. In the frenetic world of trading, manual traders may be at a disadvantage compared to traders who use considerable computing power to exploit pricing anomalies in the markets.

Manual Trader

A market-if-touched (MIT) order is a conditional order that becomes a market order when a security reaches a specified price.

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Market-If-Touched (MIT) Order In this case, they may place an MIT order at that price to automatically trigger a market buy order once the price reaches the price level they view as undervalued. A sell market-if-touched order will trigger a market sell order when the security reaches a specified sell price. A market-if-touched (MIT) order is a conditional order that becomes a market order when a security reaches a specified price, even if it does so only briefly. If the price moves to $8.00 or below—the trigger price—a market buy order will be sent out and filled at the best price at the time.

Market-If-Touched (MIT) Order

A market-on-close (MOC) order is a non-limit order that is executed as close to the end of the market day as possible.

A market-on-close (MOC) order is a non-limit market order, which traders execute as near to the closing price as they can—either exactly at, or slightly after the market close. MOC orders do not specify a target price, but traders sometimes use MOC orders as a limit-order qualifier—which means that a limit order will be automatically canceled if it isn't executed during the trading day. A market-on-close (MOC) order is a non-limit market order, which traders execute as near to the closing price as they can—either exactly at, or slightly after the market close. On the New York Stock Exchange (NYSE), for example, traders must submit a MOC order by 3:45 p.m. EST, and on the Nasdaq, they must submit a MOC order by 3:50 p.m. EST, as both exchanges close at 4:00 p.m. EST. Although placing a market-on-close (MOC) order can guarantee that your buy or sell order will occur at the close of trading, it does not guarantee the price.

Market-On-Close (MOC) Order

A market-on-open order is an order to be executed at the day's opening price.

A Market-On-Open (MOO) order is an order to be executed at the day's opening price. Alternatively, if the investor thinks that Intel may recover somewhat throughout the next trading day and would rather hold their position than take the opening market price, they could enter an LOO order, which specifies the price at which they are willing to sell their Intel shares. The MOO order does not specify a limit price, unlike a Limit-on-Open (LOO) order that specifies one, and is the sister order to the Market-on-Close (MOC) order. Market-On-Open (MOO) orders are non-limit market orders executed at the very opening print of the trading day in a security. A Market-On-Open (MOO) order is an order to be executed at the day's opening price.

Market-On-Open Order (MOO)

A market-with-protection order cancels a market order to buy or sell an asset and re-submits it with a price limit that protects the trader.

A market-with-protection order cancels an order to buy or sell stock or other assets and re-submits it as a limit order. In the case of a market-with-protection order, the missed trade opportunity cost reflects the difference between the original, unfulfilled, market order price and the revised order price. The trader cancels a market order and replaces it with a market-with-protection order in order to ensure a reasonable price. A broker might submit a market-with-protection order if the price of the stock has moved unexpectedly and dramatically since the market order was placed. A market-with-protection order cancels an order to buy or sell stock or other assets and re-submits it as a limit order.

Market-With-Protection Order

A minimum guaranteed fill (MGF) order requires a trader to complete transactions for small market orders at the current posted bid or ask price.

A minimum guaranteed fill (MGF) order in the financial markets requires traders to fulfill small purchases from retail investors at the best current bid or ask price if the purchases are at or below the set minimum. If a client puts in a market order to purchase 900 shares, the client will receive 400 shares at the posted offer price of $4.10, and the balance 500 shares from the market maker, also at $4.10. If an investor wants to sell 400 shares but only 200 are bid at the price sought, the investor can still enter the sell order for 400 shares and the order will be completely filled. A minimum guaranteed fill order is intended to enable an investor who buys seven shares of stock to get as fair a price as an investor in 100 shares. However, if an investor attempts to sell 700 shares, which exceeds the established MGF for that stock, only the order for the 200 shares that have actually been bid will be completed.

Minimum Guaranteed Fill (MGF) Order

A not-held order, usually a market or limit order, gives the broker, or floor trader, both time and price discretion to get the best possible price.

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What Is a Not-Held Order? For example, an investor might give the broker a market not-held order to buy 1,000 Apple (AAPL) with an instruction to execute the order at the best price they can get before the market closes. A not-held order, usually a market or limit order, gives a broker both time and price discretion to get the best price available. An investor placing a not-held order is trusting that the broker can obtain a better market price than what the investor can get by accessing the market directly on their own. The opposite of a not-held order is a held order, which is the order that most investors are more familiar with, and one that demands immediate execution.

Not-Held Order

A one-cancels-the-other order is a pair of orders stipulating that if one order executes, then the other order is automatically canceled.

A one-cancels-the-other order (OCO) is a pair of conditional orders stipulating that if one order executes, then the other order is automatically canceled. The investor could, therefore, place an OCO order, which would consist of a stop-loss order to sell 1,000 shares at $8, and a simultaneous limit order to sell 1,000 shares at $13, whichever occurs first. Conversely, if a trader wanted to use a retracement strategy that buys at support and sells at resistance, they could place an OCO order with a buy limit order at $20 and a sell limit order at $22. A one-cancels-the-other order (OCO) is a pair of conditional orders stipulating that if one order executes, then the other order is automatically canceled. An OCO order often combines a stop order with a limit order on an automated trading platform.

One-Cancels-the-Other Order - (OCO)

A one-cancels-all (OCA) order is a set of multiple orders placed together. If one order is triggered in full, the others are automatically canceled.

A one-cancel-all order (OCA) is a bundle of at least three stock or option limit orders placed together. In this alternative order, an investor places a market buy order for shares of company X and brackets that order with two sell orders.
The first is a sell limit order at a strike price higher than the original market purchase price; the second is a stop-loss order set at an acceptable margin below the market purchase price. This means that an OCA order carries a very small risk that more than one order could actually be filled within the split second after the first order is filled but before all other orders can be canceled.
Depending on how the broker's system is programmed, if the triggered order can only be partially filled, the other orders may be left open but adjusted according to the proportion of the partially executed trade. A third rationale for an OCA order sometimes referred to as a bracketed order is designed to ensure profit in the case of a stock’s escalating price and safeguard against downside loss. For instance, a trader looking to own a particular stock may bundle a standard limit purchase order for the stock with one or more options contracts that could give them other rights to purchase the stock at a favorable price.

Trading Order Types and Processes

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