BROWSE

Canceled Order

What is 'Canceled Order'

1. A previously submitted order to purchase or sell a security that is canceled before it has been executed on an exchange.

2. An order that can't be executed due to parameter limitations, such as a limit order that can't be filled because the price has moved outside of range.

Explaining 'Canceled Order'

Most equity orders (especially market orders) are executed so fast today that canceling them before execution may not be possible despite the investor's efforts. Limit orders that are outside of the current stock price can usually be canceled online or by calling the broker directly. Other order types that can quickly become canceled orders are "all-or-none" orders and "fill or kill" orders.


Further Reading


Market vs. limit orders: The SuperDOT evidence on order submission strategy
www.jstor.org [PDF]
… The fact that only a fraction of all canceled orders are actually resubmitted indicates that many limit order traders are passive … This computation also overstates the true economic loss because market orders often execute at prices more favorable than the opposite-side quote …

Econometric models of limit-order executionsEconometric models of limit-order executions
www.sciencedirect.com [PDF]
… The fact that only a fraction of all canceled orders are actually resubmitted indicates that many limit order traders are passive … This computation also overstates the true economic loss because market orders often execute at prices more favorable than the opposite-side quote …

Long-run performance and insider trading in completed and canceled seasoned equity offeringsLong-run performance and insider trading in completed and canceled seasoned equity offerings
www.jstor.org [PDF]
… The fact that only a fraction of all canceled orders are actually resubmitted indicates that many limit order traders are passive … This computation also overstates the true economic loss because market orders often execute at prices more favorable than the opposite-side quote …

The predictive power of zero intelligence in financial marketsThe predictive power of zero intelligence in financial markets
www.pnas.org [PDF]
… The fact that only a fraction of all canceled orders are actually resubmitted indicates that many limit order traders are passive … This computation also overstates the true economic loss because market orders often execute at prices more favorable than the opposite-side quote …

The costs and determinants of order aggressivenessThe costs and determinants of order aggressiveness
www.sciencedirect.com [PDF]
… The fact that only a fraction of all canceled orders are actually resubmitted indicates that many limit order traders are passive … This computation also overstates the true economic loss because market orders often execute at prices more favorable than the opposite-side quote …

The Role of Canceled Warrants in the LME MarketThe Role of Canceled Warrants in the LME Market
www.mdpi.com [PDF]
… The fact that only a fraction of all canceled orders are actually resubmitted indicates that many limit order traders are passive … This computation also overstates the true economic loss because market orders often execute at prices more favorable than the opposite-side quote …

Integrating real and financial markets in an agent-based economic model: an application to monetary policy designIntegrating real and financial markets in an agent-based economic model: an application to monetary policy design
link.springer.com [PDF]
… The fact that only a fraction of all canceled orders are actually resubmitted indicates that many limit order traders are passive … This computation also overstates the true economic loss because market orders often execute at prices more favorable than the opposite-side quote …

Order flow dynamics around extreme price changes on an emerging stock marketOrder flow dynamics around extreme price changes on an emerging stock market
iopscience.iop.org [PDF]
… The fact that only a fraction of all canceled orders are actually resubmitted indicates that many limit order traders are passive … This computation also overstates the true economic loss because market orders often execute at prices more favorable than the opposite-side quote …

Order cancellations, fees, and execution quality in US equity optionsOrder cancellations, fees, and execution quality in US equity options
academic.oup.com [PDF]
… The fact that only a fraction of all canceled orders are actually resubmitted indicates that many limit order traders are passive … This computation also overstates the true economic loss because market orders often execute at prices more favorable than the opposite-side quote …



Q&A About Canceled Order


What type of orders can quickly become cancelled orders?

"All-or-none" and "fill or kill" types of orders can quickly become cancelled orders.

Are all equity orders executed so fast today that they can't be canceled before execution?

No, most equity orders (especially market orders) are not executed so fast today that they can't be canceled before execution.

What are the two reasons for canceling an order?

The investor may want to cancel an order because it cannot be filled or because they have changed their mind about buying or selling a security.

What is a canceled order?

A canceled order is an order that has been submitted to the market but not executed.

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