What is: Not Held Order

What is: Not Held Order

A Not Held Order is a type of order in trading that gives the broker discretion on when to execute the trade. This means that the broker has the flexibility to choose the best time and price to execute the order on behalf of the client.

How Does a Not Held Order Work?

When a trader places a Not Held Order, they are essentially giving the broker the authority to make decisions on their behalf. This can be beneficial in volatile markets where timing is crucial, as the broker can wait for the most favorable conditions to execute the trade.

Benefits of Using a Not Held Order

One of the main advantages of using a Not Held Order is that it allows for greater flexibility and control over the execution of the trade. This can help traders avoid slippage and get better prices for their trades.

Considerations When Using a Not Held Order

It is important for traders to understand that by using a Not Held Order, they are giving up some control over the timing of the trade. While this can be beneficial in certain situations, it also means that the broker has the final say on when to execute the order.

Examples of Not Held Orders

Not Held Orders are commonly used in situations where the trader wants to take advantage of market conditions but does not want to be tied to a specific time or price. For example, a trader may use a Not Held Order when trading in a fast-moving market where prices can change rapidly.

Conclusion

In conclusion, a Not Held Order is a useful tool for traders who want more flexibility and control over the execution of their trades. By giving the broker discretion on when to execute the order, traders can potentially get better prices and avoid slippage in volatile markets.