Order (exchange)

A security order is the order to buy or sell a specific amount of shares in a joint stock company or similar financial instrument. Earlier shares were predominantly ( shares in a company ) and bonds ( fixed rate bonds, such as government bonds ) are considered securities. Meanwhile, the variety of products has changed (eg options and futures). Therefore, often the term is used financial instruments.

Expiration

The respective order to buy or sell can person, in writing or by telephone will be given at a financial institution. For admission to online banking with brokerage account every internet user can enter an order.

For the execution of the order, there are provisions that are set out in the Exchange Rules of the respective trading venue ( Exchange) - an exception is the OTC -Order ( over the counter). This is a free agreement between two parties, one of which usually is an institutional investor.

Orders have here is usually the following components:

  • Number and nature of the market -promoting article. For securities name, symbol, WKN or ISIN,
  • Order action ( buy / sell)
  • Order types (Limit, Market ... )
  • Order restriction ( stop limit price)
  • Order runtime
  • Stock Exchange

An order can have different execution modes:

  • Market Order ( best price order) The order will be executed at the valid in each case on the stock exchange at the time of order entry price.
  • The order will be executed at a specified price or better. If during the term of order ( at most exchanges a maximum of 90 days) the rate is not achieved, then the order will be deleted. In general, a shorter duration of the order is given.

If an order has encountered a problem and not competitive, then one speaks of a Mistrade.

Pegged Order

As Pegged order dynamic programmed buy orders are referred to their offer price moves automatically at a specified distance from the respective Underlying. Distinguish let the order types:

  • Pegged to Market (Order Price is based on the best available market price)
  • Pegged to Primary (Order price is always better than, the current best market price in a specified distance)
  • Pegged to Stock (Order price of an option is based on the current market price of the underlying share)
Share (finance) Bond (finance)
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