Block Order

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Dictionary Says

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".
Investopedia Says

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".

Related Definitions

  • Block Trade

    An order/trade submitted for sale or purchase of a large quantity of securities. Also known as "Block Order".
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  • Block House

    A brokerage firm with the primary focus of locating potential buyers and sellers of large trades. A block house typically deals with institutional clients rather than individual ...
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  • Institutional Investor

    A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. ...
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    • Iceberg Order

      A large single order that has been divided into smaller lots, usually by the use of an automated program, for the purpose of hiding the actual order quantity.
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    • Elephants

      Slang for large institutions that have the funds to make high volumes trades. Due to the large volumes of stock that elephants deal in, any investment decisions that they make will have ...
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    • Blockage Discount

      The difference between the market value of a security and its sale price when transacted under a block trade. Each blockage discount is negotiated by the involved institutional ...
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    • Bagging the Street

      An investor's failure to avoid trading in the stocks that are part of a block and also within a specified amount of time. Bagging the street refers to a situation where an investor or a ...
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    • Block Trading Facility - BTF

      A wholesale trading facility that allows traders to buy or sell large numbers of securities bilaterally outside of the public market. Because trades conducted in a block trading facility ...
      Read More »

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