DEFINITION of 'Limit Order Information System - LOIS'

An electronic system used by specialists in the stock market. A limit order information system lists price and size quotes for exchange-listed securities. The data produced by this system is used by subscribers and specialists to locate the most opportunistic market for making a trade because the service distributes information about where a security is traded, order quantities, and bid and offer prices.

BREAKING DOWN 'Limit Order Information System - LOIS'

This system is used to locate the best securities prices available and produces information about securities traded on participating exchanges like the Nasdaq and NYSE. A limit order is an order to buy or sell a stock at a specific price, and includes information such as order quantities, bid price, offer and the exchange on which the security is listed. Limit orders help protect buyers or sellers of a stock from selling at a price that is higher or lower than desired.

RELATED TERMS
  1. Price Transparency

    The accessibility of information on the order flow for a particular ...
  2. Specialist

    A member of an exchange who acts as the market maker to facilitate ...
  3. Stopped Order

    A market order on the NYSE that is stopped from being executed ...
  4. Buy Limit Order

    An order to purchase a security at or below a specified price. ...
  5. Away From The Market

    An expression that is used when the bid on a limit order is lower ...
  6. Alternative Trading System - ATS

    A trading system that is not regulated as an exchange, but is ...
Related Articles
  1. Investing

    Explaining Market Orders

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

    Is The Series 24 Exam Hard?

    What makes the series 24 so challenging? The exam focuses very heavily on the supervision of trading and market making and the supervision of investment banking.
  3. Trading

    The Basics Of Trading A Stock

    Taking control of your portfolio means knowing what orders to use when buying or selling stocks.
  4. Trading

    Trading Systems: Run With The Herd Or Be A Lone Wolf?

    Find out if taking the path less traveled will work in your favor - or against it.
  5. Trading

    The Basics Of The Bid-Ask Spread

    The bid-ask spread is essentially a negotiation in progress. To be successful, traders must be willing to take a stand and walk away in the bid-ask process through limit orders.
  6. Personal Finance

    A Day In The Life Of A System Trader

    Systems traders divide their time between trading, developing, backtesting, optimizing and forward testing, to create viable and high-probability trading systems.
  7. Trading

    Which Order To Use? Stop-Loss Or Stop-Limit Orders

    Stop-loss and stop-limit orders can provide different types of protection for investors seeking to lock in profits or limit losses. Investors need to know how each type of order works to know ...
  8. Insights

    Inside National Payment Systems

    Investopedia explains: The global interconnection of U.S. payment systems makes commerical and financial transfers possible.
  9. Insights

    The NYSE and Nasdaq: How They Work

    Learn some of the important differences in the way these exchanges operate and the securities that trade on them.
RELATED FAQS
  1. A _______ is a person on the trading floor of certain exchanges who holds an inventory ...

    The correct answer is d. A good example of an exchange using the specialist system is the NYSE. Each stock listed on the ... Read Answer >>
  2. What's the difference between a Nasdaq market maker and a NYSE specialist?

    What's the main difference between a specialist and a market maker? Not much. Both the New York Stock Exchange (NYSE) specialist ... Read Answer >>
  3. Who employs the specialists at New York Stock Exchange (NYSE)? Do they work for themselves, ...

    Before we address this question, let's review what specialists do. Specialists are people on the trading floor of an exchange, ... Read Answer >>
  4. What's the difference between a market order and a limit order?

    Buy and sell trades with market orders at the present stock price and execute limit orders if the stock price falls within ... Read Answer >>
  5. What exactly is being done when shares are bought and sold?

    Most stocks are traded on physical or virtual exchanges. The New York Stock Exchange (NYSE), for example, is a physical exchange ... Read Answer >>
  6. 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 >>
Trading Center