What is ‘Cancel Former Order – CFO’
An order from an investor to a broker, to cancel a previously placed order that has not yet been filled. Cancel former order (CFO) is used by an investor who has changed his or her mind about a securities transaction that has not yet been executed or filled, and wishes to change one or more of the order parameters, such as price or amount. By canceling the previous order, a CFO ensures that no order duplication takes place if the client generates a new order for the same security.
Explaining ‘Cancel Former Order – CFO’
It goes without saying that a CFO can only be used to replace unfilled orders; orders where a fill has been received are binding contracts and cannot be revoked.
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