Limit Orders
A limit order is the most common order type that is placed to trade at a certain price or at a better price if available, by specifying the issue, the quantity and the price. As the specified price means the limit at which the order can be matched, a bid limit order is executed only at or lower than the specified price and an ask limit order is executed only at or higher than the specified price.
Marker Orders
A market order specifies the issue and quantity but not the price and intends to trade immediately at the best price currently available in the market. Therefore, in general, a market order is executed prior to limit orders with the best orders on the counter side in the order book based on price priority until all the specified quantity are matched.
Limit-to-Market-on-Close Orders
A limit-to-market-on-close order is an order that participates in the market as a limit order during the regular session, but has the condition to convert remaining quantity of the order to a market order at 15:20 when the quotation receiving hours begins for the market closing call auction.
Immediately Executable Limit Orders
This type of order is a limit order designating the limit price at the best available price on the counter side at the time of order placement, thus allowing the order to be executed immediately at the best price. That is, in case of an immediately executable limit order to sell, the highest bid price at the time the order is placed is the specified limit price and in case of an immediately executable limit order to buy, the lowest ask price at the time the order is placed is the specified limit price to be matched.
Best Limit Orders
A best limit order is a type of limit order designating the limit price at the best available price of the same side orders at the time the order is placed. In case of an ask order, the lowest ask price at the time the order is placed is the specified limit price and in case of a bid order, the highest bid price at the time the order is placed is the specified limit price to be matched.
Target Price Orders
A target price order is an order specifying the intention to trade at a target price such as the VWAP (Volume Weighted Average Price) which is to be determined later and giving the member the discretion to match at prices as close as possible to the target price. However, as there is not a separate type of order related to the target price, members need to split a target price order into multiple limit and market orders.
Auction-based Block Trading Orders
An order type where an investor specifies the issue and quantity and have the price matched at VWAP of the day. This is a type of block trading to minimize the market impact by block trading. There is a minimum quantity requirement and the trade is matched separately from the regular market without being disclosed of the trade details. (For more details please refer to– “Auction-based Block Trading”)