Order Splitting


DEFINITION of 'Order Splitting'

When brokers split up larger orders to qualify them for the Small Order Execution System (SOES) and, therefore, have them automatically executed.

BREAKING DOWN 'Order Splitting'

SOES is for individual traders with orders less than or equal to 1,000 shares. The practice of order splitting is prohibited on the Nasdaq.

  1. Nasdaq

    A global electronic marketplace for buying and selling securities, ...
  2. Small Order Execution System - ...

    A computer network that automatically executed trades in Nasdaq ...
  3. Order

    An investor's instructions to a broker or brokerage firm to purchase ...
  4. Tape Shredding

    When a broker divides an order for securities into a number of ...
  5. Split Block Pricing

    The act of dividing a large order of financial securities into ...
  6. Clowngrade

    An upgrade or downgrade of a security for reasons considered ...
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