Firm Order


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.


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.

  1. Confirmation

    1. The occurrence of two or more indicators corresponding with ...
  2. Trading Authorization

    The level of power entrusted to a broker or agent granting specific ...
  3. Managed Account

    An investment account that is owned by an individual investor ...
  4. Brokerage Account

    An arrangement between an investor and a licensed brokerage firm ...
  5. Full Trading Authorization

    A level of trading authorization that grants an agent or broker the ...
  6. Market Order

    An order that an investor makes through a broker or brokerage ...
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  1. My broker just sold securities out of my account without my permission. Is this legal?

    Your broker's actions are not legal unless he or she sold the securities under certain conditions. Let's look at the two ... Read Full Answer >>
  2. 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 >>
  3. 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 >>
  4. 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 >>
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    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 >>
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