Time-in-Force and Special Order Designations
Chapters in this video
- 0:00 Day order default and good-til-canceled (GTC)
- 1:37 Market-on-close (MOC) and the 3:45 PM cutoff
- 2:38 IOC vs. FOK vs. AON: the two-question framework
- 4:22 FOK and IOC: immediate execution compared
- 5:27 Not-held orders and the three A's test
- 7:09 Spread different vs. straddle same
- 7:44 Rapid-fire exam recap
What this video covers
- Why an order with no stated time limit is always a day order, and when good-til-canceled (GTC) orders survive past the closing bell
- The 3:45 PM Eastern cutoff for market-on-close (MOC) orders on the NYSE
- How immediate-or-cancel (IOC), fill-or-kill (FOK), and all-or-none (AON) differ on the two dimensions of immediacy and partial-fill acceptance
- Why FOK is the most demanding designation: complete fill and immediate execution, or total cancellation
- Why AON orders are held by the floor broker, not the Designated Market Maker (DMM), on the NYSE
- The three A's (Asset, Action, Amount) that separate a not-held order from a true discretionary order
- Why spread orders involve different strike prices or expirations, while straddle orders involve the same strike price and expiration
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