Firm Order

Filed Under:
Dictionary Says

Definition of 'Firm Order'


1. A market order to buy or sell a security for a brokerage's proprietary account. A firm order requires a trader to be fully authorized by the brokerage before executing the transaction.

2. A buy or sell order executed by a broker for a client's account. This is not contingent on the customer's confirmation.

Investopedia Says

Investopedia explains 'Firm Order'


1. A firm order is made for the brokerage's equity portfolio and is held in the firm's trading account. Shares purchased under a firm order are held directly by the brokerage.

2. Full trading authorization is typically required for a broker to execute a transaction on behalf of a client without first confirming the order. This type of trade allows a client to benefit from any timely knowledge the broker may have.

comments powered by Disqus
Hot Definitions
  1. Chicago Mercantile Exchange - CME

    The world's second-largest exchange for futures and options on futures and the largest in the U.S. Trading involves mostly futures on interest rates, currency, equities, stock indices and agricultural products.
  2. Private Equity

    Equity capital that is not quoted on a public exchange. Private equity consists of investors and funds that make investments directly into private companies or conduct buyouts of public companies that result in a delisting of public equity.
  3. Valuation

    The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
  4. Valuation

    The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
  5. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  6. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
Trading Center