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Definition of 'Sweep-To-Fill Order'
A type of market order in which the broker splits an order into numerous parts comprising the best prices and amounts at that price currently offered on the market for speedier order execution. It is used by traders who care more about entering the stock as quickly as possible and less about the price.
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Investopedia explains 'Sweep-To-Fill Order'
For example, if a trader wants to buy 1,000 shares as quickly as possible before the company issues an earnings report, he or she may use a sweep-to-fill order. If there were 200 shares offered at $40 from his/her broker, 300 shares at $42 from another broker, and 500 shares at $43, the order for 1,000 shares would be split up to match the share amounts available from each broker. The trader would receive an average price of $42.10 and would be able to buy the shares quickly.
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Find out the various ways in which a broker can fill an order, which can affect costs.
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