Securities Markets - Order Qualifiers


Day Orders

: It is assumed that every order is a day order, which means the order is cancelled at the end of the trading day if it has not been executed.

Good Till Cancelled (GTC) Orders: This type of order remains in place until it is executed or cancelled by the customer.

Market on  Open  this is an order that is entered to be executed at the opening of the trading session on the opening print. This order can be entered as a market order of as a limit order.

Market on Close Orders: This type of order can be entered at any time of the day up unilt the last few minutes of trading and may be entered as a market order or as a limit to be executed at the close of the market on the closing print.

Not Held (NH) Orders: In an NH order, the floor broker has discretion on price and timing of trade execution.

Fill or Kill (FOK) Orders: The order is either executed immediately in full or killed.

Immediate or Cancel Orders: The order is executed immediately in full or in part, and any part of the order that remains unfilled is cancelled.

All-or-None Orders: The order is executed in full, but not necessarily immediately.

Exam Tips and Tricks
Make sure you are fully aware of at least day orders and GTC orders!


  • Firm Quotes: All quotes are firm quotes unless otherwise indicated. A firm quote is the price at which a broker-dealer or market maker will buy or sell at least one trading unit of stocks (100 shares) or bonds (five bonds) at the quoted price. For instance, a firm market for a stock sounds like, "The market is 54-55", or "It is 14-14 .20". If the market maker refuses to do business at the firmly quoted price after the fact, his or her action is called backing away. Backing away is against FINRA trading rules.
  • Subject Quotes: A subject quote is given when the price is tentative, subject to the market maker's reconfirmation. The market maker may state, "It's 20 to 22, work out", or "The price is around 78-78 ¾".
  • Qualified Quotes: Contrary to firm quotes, qualified quotes are for informational purposes only and do not obligate the broker dealer to trade at those prices . Two types of qualified quotes are recognized: workout quotes and nominal quotes.

Workout quotes are approximate quotes made either when the market maker has a trade for which the order size is too large for the market or when trading in the security is light and the order needs to be "finessed" without disrupting the market. Workout quotes are common in institutional block trades, characterized by trading in units of 10,000 or more shares of a security. Nominal quotes are used to give a customer a sense of the market for a security under active trading but are not based on a real-time, factual quote for the security in question.

Exam Tips and Tricks
It is definitely a benefit to know the difference between firm
quotes and subject quotes.


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