Stock Broker
Types of Orders Depending Upon Quantity Conditions
Any investor or stock broker should have the liberty to choose his desired quantity of shares and securities, moreover he also needs the option to disclose his quantity partly. Thus, depending upon these quantity conditions, the types of orders are of the following types -
1. DISCLOSED QUANTITY (DQ) ORDER: Any order with the tag of Disclosed Quantity gives the user, either the stock broker or his client, the investor the right to disclose only a part, a portion of the total quantity of shares and securities he has ordered. Such a liberty to the investor is very helpful since he need not disclose the total ordered quantity, he can simply hide certain portion of his order and disclose the rest.
For example: If the total order quantity is 20000 shares and securities whereas the disclosed quantity is only 4000, in such a case, only the disclosed quantity is shown in the system, the rest gets hidden. Once the first 4000 shares and securities are matched, another 4000 is disclosed, once this quantity is matched, another 4000 and so on.
Please note - In total, only 5 disclosures per order, belonging to the same order number, are shown one after another.
2. MINIMUM FILL (MF) ORDER: In such an order, the user, i.e., the stock broker or his clients, the investors are given the power to decide the minimum quantity of shares and securities to be purchased or sold. In simple words, this type of order facilitates and incorporates in the user the power to decide the number of shares and securities to be traded in the market. Thus, such share trading depends upon the minimum limit set by the users the limit being called minimum fill.
3. ALL OR NONE (AON) ORDER: This type of order is of extreme nature, such a condition qualifies only if a certain quantity is completely traded at a time, if this is not done then nothing gets traded, the order stands cancelled, thus rightly giving the name All or None. An AON Order denotes complete trade, it doesn't support incomplete or partial or delayed trade.
For example: If an AON Order is of 10000 shares and securities, then all the 10000 need to be traded at one time. A single share less leads to cancellation of the order.
Thus, these quantity conditions play an important role where it gives the investors the liberty to decide upon the quantity of shares and securities to be purchased or sold.