Series 4

The Options Market Place - Other Types Of Orders

There are several other types of orders that an investor may enter. They are:

  • All or none (AON)
  • Immediate or Cancel (IOC)
  • Fill or Kill (FOK)
  • Not Held (NH)
  • Market on Open / Market on Close
All or None Orders: May be entered as day orders or GTC. All or none orders, as the name implies, indicates that the investor wants to buy or sell all of the options or none of them. All or none orders are not displayed in the market because the required special handling and the investor will not accept a partial execution.

Immediate or Cancel Orders: The investor wants to buy or sell whatever contracts they can immediately and whatever is not filled is canceled.

Fill or Kill Orders: The investor wants the entire order executed immediately or the entire order canceled.

Not Held Orders: The investor gives discretion to the floor broker as to the time and price of execution. All retail not held orders given to a representative are considered day orders unless the order is received in writing from the customer and entered GTC.

Spread Orders

Orders to establish or liquidate spreads are entered on one order ticket and are executed in a single transaction on the floor of the exchange. Larger spread orders may be handled by floor brokers who specialize in spread orders and are known as spread brokers. Orders for spreads can be entered as market orders or as limit orders. Spread limit orders will be entered as orders stating the net debit or credit to be paid or received. A spread order will identify the number of options to be bought and sold as follows:

Buy 10 TRY June 70 calls

Sell 10 TRY June 80 calls

If this was a limit order the price of both options would be listed and the difference in premiums would be the debit the investor would be willing to pay for the spread.

Series 4 training materials - Securities Institute

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