Limit-On-Open (LOO) Order

Limit-On-Open (LOO) is an order that is automatically submitted as a Limit Order (i.e. to buy/sell at the Limit Price or better) at the opening of the market, and to be executed as soon as possible after the market opening only if the price during the opening period is at or better than the Limit Price. Otherwise, the order will be cancelled.

As with limit order, while Limit-On-Open (LOO) order can be filled at the Limit Price or better, it does not guarantee a fill.

LOO order is useful when traders find that the opening price of a certain security has historically proven to be the best price of the day (i.e. the opening price is the highest for sell order, or lowest for buy order), but still want to have control over the price at which the order will be filled to ensure that the execution price is still within their comfortable / acceptable limit.

For the list of other types of order, go to: Types of Orders in Trading.

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