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 Maker

    A broker-dealer firm that accepts the risk of holding a certain ...
  5. Market Order

    An order that an investor makes through a broker or brokerage ...
  6. Bidding Up - Securities

    The act of increasing the price an investor is willing to pay ...
Related Articles
  1. Trailing-Stop/Stop-Loss Combo Leads ...
    Options & Futures

    Trailing-Stop/Stop-Loss Combo Leads ...

  2. How Brokers Can Avoid A Market-Maker's ...
    Professionals

    How Brokers Can Avoid A Market-Maker's ...

  3. The Basics Of Trading A Stock
    Active Trading Fundamentals

    The Basics Of Trading A Stock

  4. Protect Yourself From Market Loss
    Options & Futures

    Protect Yourself From Market Loss

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center