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.
Explanation
At-the-Opening instructions typically involve market orders for stocks, but may also be combined with a limit order. When placed, an At-the-Opening order must be executed as soon as practicable after the trading day starts. If the entire order, or any portion of it, cannot be executed then it is automatically canceled. It is possible for an At-the-Opening order to be partially filled.
Companies will oftentimes make announcements that can significantly affect the price of their stock prior to, or immediately following, the market's close. Traders will place this type of order if they believe the announcement will affect the stock's opening price on the next trading day.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
The term One-Cancels-the-Other refers to instructions sent to a broker that consist of two active orders; if either is executed, the second is automatically inactivated. One-Cancels-the-Other orders are oftentimes used by traders to mitigate risk in a volatile market.
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.
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.