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".

BREAKING DOWN '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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RELATED FAQS
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    Buy and sell trades with market orders at the present stock price and execute limit orders if the stock price falls within ... Read Answer >>
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    Learn how a limit order is placed, the types of stocks it is most useful for and the specifications placed with it to suit ... Read Answer >>
  3. How does a block chain prevent double-spending of Bitcoins?

    Find out how double-spending is prevented in the Bitcoin server and how transactions are posted and verified on the Bitcoin ... Read Answer >>
  4. What is the difference between a stop and a market order?

    Learn about market orders and stop orders, how they are used and executed, and the main difference between stop orders and ... Read Answer >>
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