Minimum Guaranteed Fill Order- MGF

AAA

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.

RELATED TERMS
  1. Limit Order

    An order placed with a brokerage to buy or sell a set number ...
  2. Market-Maker Spread

    The difference between the price at which a market maker is willing ...
  3. At Best

    An order to fill a transaction at the most desirable price available, ...
  4. Market Order

    An order that an investor makes through a broker or brokerage ...
  5. Market Maker

    A broker-dealer firm that accepts the risk of holding a certain ...
  6. Bidding Up - Securities

    The act of increasing the price an investor is willing to pay ...
RELATED FAQS
  1. Do stop or limit orders protect you against gaps in a stock's price?

    Many individuals are hesitant to invest in the stock market because of the large gaps in prices talked about in the news. ... Read Full Answer >>
  2. How does a stop-loss order work, and what price is used to trigger the order?

    A stop-loss order, or stop order, is a type of advanced trade order that can be placed with most brokerage houses. The order ... Read Full Answer >>
Related Articles
  1. Options & Futures

    Trailing-Stop/Stop-Loss Combo Leads To Winning Trades

    Combine trailing stops with stop-loss orders to reduce risk and protect portfolio value.
  2. Professionals

    How Brokers Can Avoid A Market-Maker's Tricks

    Ensure that you and your clients are getting the best deal by avoiding these three pitfalls.
  3. Active Trading Fundamentals

    The Basics Of Trading A Stock

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

    Protect Yourself From Market Loss

    There are several simple strategies you can use to protect yourself from downside risk.
  5. Trading Strategies

    Making The Trade: Understand Order Types

    Buying and selling stock can be a lot like buying or selling a car. Traders should use and understand tools such as market orders, limit orders, day orders, and good-'til-canceled orders to ensure ...
  6. Trading Strategies

    Patience Is A Trader's Virtue

    Waiting may be the biggest key to reeling in that trophy investment.
  7. Investing Basics

    Narrow Your Range With Stop-Limit Orders

    With stop-limit orders, buyers protect themselves from prices too high for their tastes.
  8. Trading Strategies

    How to Use Trailing Stops

    A trailing stop is an order to buy or sell a security if it moves in an unfavorable direction.
  9. Active Trading

    Pinpoint Winning Trade Entries With Filters And Triggers

    These tools will help you enter at high-probability points and ensure you trade within your set strategy.
  10. Active Trading Fundamentals

    Trailing-Stop Techniques

    The important decision to exit a position must be based on more than emotion if you want to be a disciplined trader.

You May Also Like

Hot Definitions
  1. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  2. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  3. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  4. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  5. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  6. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
Trading Center