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]
- Econometric models of limit-order executions – www.sciencedirect.com [PDF]
- Long-run performance and insider trading in completed and canceled seasoned equity offerings – www.jstor.org [PDF]
- The predictive power of zero intelligence in financial markets – www.pnas.org [PDF]
- The costs and determinants of order aggressiveness – www.sciencedirect.com [PDF]
- The Role of Canceled Warrants in the LME Market – www.mdpi.com [PDF]
- Integrating real and financial markets in an agent-based economic model: an application to monetary policy design – link.springer.com [PDF]
- Order flow dynamics around extreme price changes on an emerging stock market – iopscience.iop.org [PDF]
- Order cancellations, fees, and execution quality in US equity options – academic.oup.com [PDF]
