Block Order
Definition of 'Block Order'A signficant order placed for sale or purchase of a large number of securities. Block orders are often used by institutional investors.Also known as a "Block Trade". |
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Investopedia explains 'Block Order'Typically, a 10,000 share order (excluding penny stocks) or $200,000 worth of fixed-income securities would consititue a block order. When a trader wants to unload his or her securities quickly they will often sell them at a discount, aptly named a "blockage discount". |
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