Minimum Guaranteed Fill Order- MGF

Definition of 'Minimum Guaranteed Fill Order- MGF'


A service provided by market makers in its assigned stocks to maintain fair and orderly markets. Minimum guaranteed fill (MGF) orders are a guaranteed fill for small market orders from retail clients up to a specific size at the best posted bid or ask price. Each stock has a MGF volume that depends on its liquidity. Clients who place market orders or limit orders can benefit from MGF orders.

Investopedia explains 'Minimum Guaranteed Fill Order- MGF'


For example, assume a stock that has an MGF volume of 1,200 shares is trading at $4 /$4.10, with 600 shares bid at $4, and 400 shares offered at $4.10. If a client puts in a market order to purchase 900 shares, he or she will receive 400 shares at the posted offer price of $4.10, and the balance 500 shares from the market maker, also at $4.10.


Filed Under:

comments powered by Disqus
Hot Definitions
  1. Benchmark Bond

    A bond that provides a standard against which the performance of other bonds can be measured. Government bonds are almost always used as benchmark bonds. Also referred to as "benchmark issue" or "bellwether issue".
  2. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying a company's shares outstanding by the current market price of one share. The investment community uses this figure to determine a company's size, as opposed to sales or total asset figures.
  3. Oil Reserves

    An estimate of the amount of crude oil located in a particular economic region. Oil reserves must have the potential of being extracted under current technological constraints. For example, if oil pools are located at unattainable depths, they would not be considered part of the nation's reserves.
  4. Joint Venture - JV

    A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a joint venture (JV), each of the participants is responsible for profits, losses and costs associated with it.
  5. Aggregate Risk

    The exposure of a bank, financial institution, or any type of major investor to foreign exchange contracts - both spot and forward - from a single counterparty or client. Aggregate risk in forex may also be defined as the total exposure of an entity to changes or fluctuations in currency rates.
  6. Organic Growth

    The growth rate that a company can achieve by increasing output and enhancing sales. This excludes any profits or growth acquired from takeovers, acquisitions or mergers. Takeovers, acquisitions and mergers do not bring about profits generated within the company, and are therefore not considered organic.
Trading Center