Page 15 - FINAL CFA SLIDES DECEMBER 2018 DAY 13
P. 15
Session Unit 13:
44. Market Structure & organisation
Validating Instructions, p.203
Day orders These expire if unfulfilled by end of the day
Good-till-cancelled orders These last till they are fulfilled
Immediate-or-cancel orders (also called fill-or-kill) These are cancelled unless they be fulfilled immediately
Good-on-close orders Only fulfilled at the end of the trading day.; if they are market orders, they are
tanties
called market-on close orders.
Good-on-openorders Only fulfilled at the open of the trading day.
Stop orders Those that are not executed unless the stop price has been met.
Stop loss orders Stop orders are used to prevent losses or protect profits
Stop-buy Entered with a stop (trigger) above the current market price to execute when
prices are rising, to:
1) Limit losses from an increasing stock price in a short sales position,
2) Investor believes a stock is undervalued but does not wish to own it until
market appears to hare this sentiment (‘ You don’t get paid for being right
until the market agrees with you.’’)
Stop-sell orders Execute when market prices are falling
