Definition
The term At-the-Close refers to broker instructions to buy or sell securities at the very end of the trading day. If an At-the-Close order cannot be executed in the final minutes of trading, then it will be canceled.
Explanation
At-the-Close instructions typically involve market or limit orders to buy or sell stocks. When placed, an At-the-Close order must be executed in the closing few minutes of a trading day. If the entire order, or any portion of it, cannot be executed before the closing bell, then it is automatically canceled. It is possible for an At-the-Close order to be partially filled.
If combined with a market order, a trader is trying to buy or sell a security at a value near the security's closing price. How near the order's value is to the closing price will depend on factors such as the market's liquidity for the security being traded. By placing an At-the-Close order, the trader does not have to worry about executing a market order later in the day.
Traders that believe a security will move significantly up or down near the end of the day, and are looking for a specific price point, have the option of combining At-the-Close instructions with a limit order. If the price of the security does not pass through the limit price, then the order is not executed.
Related Terms
The term All-or-None order refers to broker instructions to buy or sell a quantity of securities in their entirety, or none at all. If an All-or-None order cannot be executed immediately, it remains open until it is executed or is closed at the end of the trading day.
Moneyzine EditorNovember 6th, 2024
The term Fill-or-Kill refers to broker instructions to buy or sell a security immediately, and in its entirety, or cancel the order. From a practical standpoint, a Fill-or-Kill order specifies the instruction will remain active for several seconds before being filled or canceled.Moneyzine EditorNovember 6th, 2024
The term Good-Til-Canceled refers to broker instructions to buy or sell a security at a fixed price, and the order will remain active until the investor cancels it or it is filled. From a practical standpoint, a Good-Til-Canceled order specifies the instruction will remain active even if it is not filled on the same trading day.Moneyzine EditorJanuary 19th, 2024
The term Immediate-or-Cancel refers to broker instructions to buy or sell a security instantly, or cancel the order. From a practical standpoint, an Immediate-or-Cancel order specifies the instruction will remain active for several seconds before being filled or canceled.Moneyzine EditorNovember 6th, 2024- The term National Best Offer refers to the lowest available ask price, which is a consolidated value from all of the national stock exchanges. The National Best Offer is the lowest price sellers are willing to accept for a security such as a stock.Moneyzine EditorSeptember 20th, 2023
- The term National Best Bid refers to the highest available bid price, which is a consolidated value from all of the national stock exchanges. The National Best Bid is the maximum price buyers are willing to pay for a security such as a stock.Moneyzine EditorSeptember 20th, 2023
The term market order refers to instructions sent to a broker to buy or sell a security immediately at the best available price. Since there are no restrictions on the selling or purchase price of the security, a market order is oftentimes immediately executed.Moneyzine EditorNovember 6th, 2024
The term limit order refers to instructions sent to a broker to buy or sell securities at a specific price or better. Since a limit order is not a market order, there is no guarantee the transaction will occur.Moneyzine EditorNovember 6th, 2024
The term day order refers to broker instructions to buy or sell a security that automatically expires at the end of the trading day if not executed. Unless specified by the investor, the default orders to buy and sell stocks at most brokerage houses are day orders.Moneyzine EditorNovember 6th, 2024- The term One-Triggers-the-Other refers to instructions sent to a broker that consist of a primary order and a secondary order, which becomes active only if the primary order is executed. One-Triggers-the-Other orders can save a trader time, since they can pair together an order to purchase stock at a certain price and sell it at another.Moneyzine EditorSeptember 20th, 2023
- The term One-Cancels-All refers to instructions sent to a broker that consist of several active limit orders; in the event one is filled, the remaining orders are automatically inactivated. One-Cancels-All provides traders with the ability to select from one of several stocks at their desired strike price.Moneyzine EditorNovember 6th, 2024
The term Good-Til-Date refers to instructions sent to a broker that specify how long an order will remain active if it is not fully executed or filled. Good-Til-Date orders are one of several types of Time-in-Force orders, which provide traders with additional flexibility beyond day orders.Moneyzine EditorJanuary 19th, 2024
The term At-the-Opening refers to instructions sent to a broker to buy or sell securities at the beginning of the trading day. If an At-the-Opening order cannot me executed as soon as the market opens, then it will be canceled.Moneyzine EditorNovember 6th, 2024
The term Market-on-Open refers to broker instructions to buy or sell securities at their market price and at the beginning of the trading day. Unless trading is halted on a security, a Market-on-Open order will be executed once trading starts for the day.Moneyzine EditorNovember 6th, 2024
The term Market-on-Close refers to broker instructions to buy or sell securities at their market price and at the end of the trading day. Unless trading is halted on a security, a Market-on-Close order will be executed at the very end of the trading day.Moneyzine EditorJanuary 24th, 2024- The term Time-in-Force refers to broker instructions that indicate how long an order will remain active before it expires or is executed. Time-in-Force orders provide investors with a mechanism to control the duration parameter for a trade.Moneyzine EditorNovember 6th, 2024
The term Market-if-Touched refers to broker instructions to buy or sell securities when they reach a price specified by the investor. Market-if-Touched is a conditional order that can be used to both buy and sell securities.Moneyzine EditorJanuary 24th, 2024- The term Trailing If-Touched refers to instructions sent to a broker to buy or sell securities when the market moves in an unfavorable direction and reaches the limit price. Trailing If-Touched orders are conditional orders, which can be used to both buy and sell securities.Moneyzine EditorSeptember 21st, 2023
