There are several other types of orders that an investor may enter. They are:

  • All or none (AON)
  • Immediate or Cancel (IOC)
  • Fill or Kill (FOK)
  • Not Held (NH)
  • Market on Open / Market on Close

All or None Orders: May be entered as day orders or GTC. All or none orders, as the name implies, indicates that the investor wants to buy or sell all of the options or none of them. All or none orders are not displayed in the market because the required special handling and the investor will not accept a partial execution.

Immediate or Cancel Orders: The investor wants to buy or sell whatever contracts they can immediately and whatever is not filled is canceled.

Fill or Kill Orders: The investor wants the entire order executed immediately or the entire order canceled.

Not Held Orders: The investor gives discretion to the floor broker as to the time and price of execution. All retail not held orders given to a representative are considered day orders unless the order is received in writing from the customer and entered GTC.

Spread Orders

Orders to establish or liquidate spreads are entered on one order ticket and are executed in a single transaction on the floor of the exchange. Larger spread orders may be handled by floor brokers who specialize in spread orders and are known as spread brokers. Orders for spreads can be entered as market orders or as limit orders. Spread limit orders will be entered as orders stating the net debit or credit to be paid or received. A spread order will identify the number of options to be bought and sold as follows:

Buy 10 TRY June 70 calls

Sell 10 TRY June 80 calls

If this was a limit order the price of both options would be listed and the difference in premiums would be the debit the investor would be willing to pay for the spread.

Need Help Passing Your Series 4 Exam?

Priority Of Option Orders

Related Articles
  1. Trading

    Why Limit Orders May Cost More Than Market Orders

    Learn the difference between a market order and a limit order, and why a trader placing a limit order sometimes pays higher fees than a trader placing a market order.
  2. Trading

    The Basics of the Bid-Ask Spread

    The bid-ask spread is the difference between the bid price and ask price prices for a particular security.
  3. Trading

    High-Frequency Trading: A Primer

    An in depth look at how high-frequency trading works and who the players are.
  4. Investing

    When Using a Money Order Makes Sense

    Money orders are usually the least expensive way to send "cleared" funds to pay a bill (or traffic ticket). Here's how they work and what to watch out for.
Frequently Asked Questions
  1. Why is there a negative correlation between quantity demanded and price?

    Learn what the law of demand is, the basic assumption of the law of demand and why there is a negative correlation between ...
  2. If an IRA owner dies after starting required minimum distributions (RMD) but the spouse is under 70½, can the spouse roll over the IRA into his/her own IRA, and stop RMDs until age 70½?

    If the IRA owner dies after the required beginning date (RBD) and his/her beneficiary is his/her spouse, the spouse beneficiary ...
  3. How do credit bureaus make money?

    Take a closer look at how credit bureaus make money, and learn about the kind of services they provide to both lenders and ...
  4. I make over $120,000/yr and my adjusted gross income precludes standard IRA contributions. My contributions to my 401(k) plan at work are limited to $18,500/yr. It seems I'm being penalized for my income. Are there other retirement savings options av

    Only your eligibility to deduct contributions will be affected. You may still make a nondeductible contribution up to the ...
Trading Center