Closing Offset (CO) Order


DEFINITION of 'Closing Offset (CO) Order'

A limit order that allows the purchase or sale of a security in order to offset an imbalance at market close. A closing offset order is accepted until market close, and must contain a limit price and have a round lot quantity. A closing offset order can be canceled or reduced by 3:45 pm for legitimate errors, but cannot be canceled after 3:58 pm.

BREAKING DOWN 'Closing Offset (CO) Order'

Closing offset orders allow traders to offset imbalances at market close by providing liquidity. This is important in situations in which incoming buy or sell orders meant to offset an imbalance create the opposite. For example, incoming orders to offset a buy imbalance lead to the creation of a sell imbalance.

The New York Stock Exchange (NYSE) proposed the idea of a closing offset order to allow traders to execute trades closer to the end of the trading day. It is designed to help traders who have to buy or sell a security at closing prices. Mutual funds, for example, use closing offset orders if they are designed to track the performance of a particular index. The introduction of the closing offset orders gives traders more time to collect and process trading orders.


  1. Limit Order

    An order placed with a brokerage to buy or sell a set number ...
  2. Limit Order Information System ...

    An electronic system used by specialists in the stock market. ...
  3. Buy Limit Order

    An order to purchase a security at or below a specified price. ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop ...
  5. Limit Order Book

    A record of unexecuted limit orders maintained by the specialist. ...
  6. At The Lowest Possible Price

    A type of security trading designation that instructs a brokerage ...
Related Articles
  1. Investing

    Redefining the Stop-Loss

    Using Stop-losses for trading doesn’t mean ‘losing money’, but instead think about the money you'll start saving once you learn how they work.
  2. Investing

    6 Reasons Why Every Investor Should Consider ETFs

    Once you understand the benefits of ETFs, you’ll see how they could be an exciting and smart way to help meet your financial goals. Here some key facts.
  3. Brokers

    Explaining Market Orders

    A market order is the most common order used to purchase a financial security.
  4. Investing Basics

    Understanding Buy Stop Orders

    A buy stop order is an order to buy a stock at a specific price above its current market price.
  5. Technical Indicators

    Use the Vortex Indicator Trading Strategy To Profit

    The vortex indicator is a relatively new technical indicator, introduced in 2010, that is gaining traction with traders and market technicians.
  6. Investing Basics

    Explaining Buy Limit Orders

    A buy limit order allows traders and investors to specify the price that they are willing to pay for a security, such as a stock.
  7. Trading Strategies

    Making The Trade: Understand Order Types

    Buying and selling stock can be a lot like buying or selling a car. Traders should use and understand tools such as market orders, limit orders, day orders, and good-'til-canceled orders to ensure ...
  8. Trading Strategies

    Patience Is A Trader's Virtue

    Waiting may be the biggest key to reeling in that trophy investment.
  9. Investing Basics

    Narrow Your Range With Stop-Limit Orders

    With stop-limit orders, buyers protect themselves from prices too high for their tastes.
  10. Trading Strategies

    How to Use Trailing Stops

    A trailing stop is an order to buy or sell a security if it moves in an unfavorable direction.
  1. How do I place an order to buy or sell shares?

    It is easy to get started buying and selling stocks, especially with the advancements in online trading since the turn of ... Read Full Answer >>
  2. How do I set a strike price in foreign exchange trading?

    In trading with a foreign exchange, a trader can set a strike price for a currency pair by entering a limit order or a stop ... Read Full Answer >>
  3. How do I place a buy limit order if I want to buy a stock during an initial public ...

    During an initial public offering, or IPO, a trader may place a buy limit order by choosing "Buy" and "Limit" in the order ... Read Full Answer >>
  4. Are stop orders only used for stocks?

    Stop orders can be used for a variety of securities and are not limited to stocks. They can be extended to other securities, ... Read Full Answer >>
  5. Should I enter a limit order to buy a position with a bid and ask that are far apart?

    You face the risk of losing the spread in a security with a bid and ask that are far apart when you enter a market order. ... Read Full Answer >>
  6. When should I use a trailing stop order?

    Trailing stop orders are used to limit losses and protect profits on a stock position. You should use trailing stop orders ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Barefoot Pilgrim

    A slang term for an unsophisticated investor who loses all of his or her wealth by trading equities in the stock market. ...
  3. Quick Ratio

    The quick ratio is an indicator of a company’s short-term liquidity. The quick ratio measures a company’s ability to meet ...
  4. Black Tuesday

    October 29, 1929, when the DJIA fell 12% - one of the largest one-day drops in stock market history. More than 16 million ...
  5. Black Monday

    October 19, 1987, when the Dow Jones Industrial Average (DJIA) lost almost 22% in a single day. That event marked the beginning ...
  6. Monetary Policy

    Monetary policy is the actions of a central bank, currency board or other regulatory committee that determine the size and ...
Trading Center