Must Be Filled - MBF


DEFINITION of 'Must Be Filled - MBF'

A must be filled (MBF) order is a trade that must be executed due to expiring options or futures contracts on those exchanges. Many MBF orders are filled on the third Friday of each month because index options often expire on those days each month. MBF orders have the advantage of being exempt from short sale rules.

BREAKING DOWN 'Must Be Filled - MBF'

MBF orders must be put into the system by 5:30pm on the day before the expiration date. These orders then must be filled immediately at the opening of options or futures exchange on the following day, which is the expiration day. These orders must be filled at the opening price of the options or futures exchange.

  1. Derivative

    A security with a price that is dependent upon or derived from ...
  2. Option

    A financial derivative that represents a contract sold by one ...
  3. Short-Sale Rule

    A Securities and Exchange Commission (SEC) trading regulation ...
  4. Futures

    A financial contract obligating the buyer to purchase an asset ...
  5. Options Contract

    A contract that allows the holder to buy or sell an underlying ...
  6. Expiration Date (Derivatives)

    The last day that an options or futures contract is valid. When ...
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