Sweep-To-Fill Order

What Does Sweep-To-Fill Order Mean?
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.

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.

Related Terms

Broker
Immediate Or Cancel Order - IOC
Limit Order
Market Order
Order
Stop Order
Stop-Loss Order
More Related Terms

Related Links

Understanding Order Execution - Find out the various ways in which a broker can fill an order, which can affect costs.
Trailing-Stop Techniques - The important decision to exit a position must be based on more than emotion if you want to be a disciplined trader.
The Basics Of Order Entry - Taking control of your portfolio means knowing what orders to use when buying or selling stocks.
The Stop-Loss Order - Make Sure You Use It - It's a simple but powerful tool to help you implement your stock-investment strategy. Find out how.
Trade free for 30 days + get $100 when you open an account. Plus, get straightforward, $9.99 Internet equity trades and no maintenance fees.

Rate this Term: Your Rating: Overall Rating: Vote Now!