Orders, Execution & Market Structure

An order placed outside trading hours that is queued by the broker and released to the exchange when the next session opens.

Test: the order is accepted after the close and submitted to the exchange at or just before the next session's start qualitative

The use of computer programs to generate and manage orders according to predefined rules, without manual intervention on each order.

Test: order generation, timing or routing is determined by a program rather than by a human decision on each individual order qualitative

Orders, Execution & Market Structure

An order that must execute in full or not at all, prohibiting partial fills.

Test: the order executes only if the entire quantity can be matched; otherwise nothing is executed qualitative

Orders, Execution & Market Structure

The lowest price a seller in the order book is currently willing to accept for a security.

Best Ask = lowest sell limit price resting in the order book ₹

Orders, Execution & Market Structure

The exchange process that buys shares in a special auction when a seller fails to deliver them on the settlement date.

Cost to the defaulting seller = Auction Price - Original Sale Price, plus penalties, with the auction price capped at a stated band ₹

Orders, Execution & Market Structure

The broker's automatic closing of an intraday or margin-deficient position when a cut-off time or a risk threshold is reached.

Test: the broker's risk system closes the position without client instruction, on time or on a margin shortfall qualitative