When trading it is imperative you understand the order types and how your broker handles them. Here is a quick little cheat sheet for you.
Market – A Market order is an order to buy or sell at the market bid or offer price. A market order may increase the likelihood of a fill and the speed of execution, but unlike the Limit order a Market order provides no price protection and may fill at a price far lower/higher than the current displayed bid/ask.
Limit – A Limit order is an order to buy or sell at a specified price or better. The Limit order ensures that if the order fills, it will not fill at a price less favorable than your limit price, but it does not guarantee a fill.
Market on Open – A Market-on-Open (MOO) order is a market order that is automatically submitted at the market’s open and fills at the market price. MOO orders participate in the Open Cross.
A MOO order combines a market order with the OPG time in force to create an order that is automatically submitted at the market’s open and fills at the market price.
Open Cross – The Open Cross is a process that generates a single opening price reflective of the true supply and demand of a particular stock as the market opens each day. The Opening Cross improves upon the current market open and resolves natural stock buy and sell imbalances at the open.
From 9:28 a.m. to 9:30 a.m. (the two minutes prior to the Open), the exchanges gather and publish information about buy or sell interest in a particular stock, including an indicative opening price.
A One-Cancels All (OCA) order comprises of a group of orders linked by a customer-created title entered in the OCA field for each order. By default, once an order in the group fills, all other linked orders are canceled. If an order is partially filled, the remaining orders will be reduced proportionately to the remaining quantity of the unfilled order.
If an order is canceled by the customer before execution, all remaining orders in the OCA group will automatically be canceled, but if one of the orders is rejected or canceled by the system, the remaining order(s) WILL NOT automatically be canceled.
Market On Close – A Market-on-Close (MOC) order is a market order that is submitted to execute as close to the closing price as possible.
NYSE rules for entering/canceling/modifying MOC; All MOC orders must be received at NYSE (and at AMEX) by 15:45 ET, unless entered to offset a published imbalance.
New York Stock Exchange (NYSE) rules also prohibit the cancellation or reduction in size of any MOC order after 15:45 ET.
NASDAQ rules for entering/ canceling/modifying MOC; All MOC orders must be received at Island by 15:50:00 EST and cannot be canceled after 15:50 EST
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