GTC Orders that are placed underneath the market and left with the specialist / DMM for execution will be reduced for the distribution of dividends. Orders that will be reduced are:

  • Buy Limits
  • Sell Stops

These orders are reduced because when a stock goes ex dividend its price is adjusted down. To ensure that customer orders placed below the market are only executed as a result of market activity, the order will be adjusted down by the value of the dividend.


A customer has placed an order to buy 500 XYZ at 35 GTC. XYZ closed yesterday at 36.10. XYZ goes ex dividend for 20 cents and opens the next day at 35.90. The customer’s order will now be an order to purchase 500 XYZ at 34.80 GTC.

If the customer had entered the order and specified that the order was not to be reduced for the distribution of ordinary dividends, it would have remained an order to purchase 500 shares at 35. The order in this case would have been entered as:

Buy 500 XYZ 35 GTC DNR

Orders placed above the market are not reduced for distributions.

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