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Username: ForexGuy

Rating:
Guru Stars

Asked to: Dara Madee

Date Created: 23 Jan 2019
Category 28
Tag Financial
Question Please give the definition of 'Canceled Order'.
Advice from Guru
Hello ForexGuy,

A canceled order is a previously submitted order to buy or sell a security that gets canceled before it executes on an exchange. Investors may cancel an order if they enter an incorrect price or quantity or simply no longer want to buy or sell the stock.

Most market orders are executed almost immediately the moment they hit the exchange, providing there is sufficient liquidity. This makes canceling a market order before execution close to impossible. Limit orders that are outside of the current bid/ask spread can usually be canceled online or by calling the broker directly. Good ‘til canceled (GTC) orders, which remain active until purged by the investor or the trade executes, can no longer be directly placed with the Nasdaq and New York Stock Exchange (NYSE). However, most brokerages continue to offer this order type.

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