Off-Floor Order

AAA

DEFINITION of 'Off-Floor Order'

An investor's directive to buy or sell securities when that directive is given to a broker, not to a trader working on the trading floor of an exchange. Exchange rules require off-floor orders, which are made on behalf of customers, to be executed before on-floor orders, which are made for exchange members'own accounts. In some cases, an off-floor order can be reclassified as an on-floor order where a conflict of interest might exist.

INVESTOPEDIA EXPLAINS 'Off-Floor Order'

To be a floor trader, one must be associated with a member firm. Member firms pay hefty fees for the privilege of trading on the floor.



RELATED TERMS
  1. Floor Broker (FB)

    An independent member of an exchange who is authorized to execute ...
  2. Floor Trader - FT

    An exchange member who executes transactions from the floor of ...
  3. Member Firm

    A broker-dealer in which at least one of the principal officers ...
  4. Trading Desk

    A desk where transactions for buying and selling securities occur. ...
  5. Trading Floor

    The floor where trading activities are conducted. Trading floors ...
  6. Business Broker

    A professional who specializes in the purchase and sale of companies. ...
Related Articles
  1. Understanding Order Execution
    Investing Basics

    Understanding Order Execution

  2. 4 Dishonest Broker Tactics And How To ...
    Personal Finance

    4 Dishonest Broker Tactics And How To ...

  3. Choosing A Compatible Broker
    Retirement

    Choosing A Compatible Broker

  4. Direct Access Trading Systems
    Options & Futures

    Direct Access Trading Systems

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center