Limit-On-Open Order - LOO

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DEFINITION of 'Limit-On-Open Order - LOO'

A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of order is good only for the market opening and does not last for the whole trading day.

BREAKING DOWN 'Limit-On-Open Order - LOO'

A trader who believes that the market open is the best time to sell his or her shares may want to use a limit-on-open order. For example, say the trader holds 1,000 shares in ABC stock and wants to sell at the market open but also wants to guarantee that he or she will receive at least $50 per share. The trader therefore uses a limit-on-open order. If at open the shares trade above $50, the order will be executed, and if they trade below, the order will not be filled and then be canceled.

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RELATED FAQS
  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 >>
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    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 >>
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