When our request to buy a stock, bond, commodity, or other security is fulfilled.
An order can be filled a number of ways. The most common way is what most of us probably think of when we think about buying stocks: we buy something and then, voila, we own it. That’s what’s called a market order, and it’s filled as soon as we put the order in. It’s like the Taco Bell of buying securities.
But sometimes the instant gratification of a market order, whether it involves commodities or chalupas, isn’t always our best strategy. Which is why orders can also be filled based on buyer specifications—like if we say we want to buy a stock, but only if its price drops below a certain dollar amount—or on more complicated and fancy stuff like algorithms. Orders can be filled partially or in full, based on what our investment strategy is and how our broker handles our account. In other words, filling an order can be nothing like buying Taco Bell. And maybe that’s a good thing.
Related or Semi-related Video
Finance: What are Limit Order, Sell Limi...7 Views
Finance a la shmoop what is a limit order? you want to sell a thousand shares
of Colonel electric it was demoted after they cut their dividend the shares have [Scissors cuts dividend in half]
been trading wildly between $15 and $25 a share you don't want to feel like a
moron for having sold them at fifteen bucks when six weeks later they kissed
25 with tongue so what do you do well you put in a limit order that is you put
a limit of a minimum price of 25 bucks a share for Colonel Electric such that [Pile of stocks appear]
those shares will simply sit in your account unsold maybe forever until
somebody out in the wild blue yonder of Stockland is willing to pay twenty five [Woman standing at a colonel electric stand]
dollars or more for the shares where you have a minimum price limit of 25 bucks a
share in your order so here's to hoping they sell and don't get further demoted [Man carries stock into car]
Sargent Electric is just a place you don't want to go
Up Next
What is an All or None Limit Order? An all or none limit order says the investor wants their order filled entirely or not at all. An investor may r...
What are At-the-Close Orders and At-the-Opening Orders? At-the-Close orders are given to brokers and the brokers can only fill them at the close of...
What are Buy Stop and Sell Stop Orders? An investor makes a buy stop order; the buy stop tells the broker to purchase an asset when its price becom...