Trading domestic listed securities

Market to limit and limit orders are two different ordering methods for trading securities. The terms relate to the ways in which orders are placed. By knowing how the two order types differ, you can work out which option is best suited to you and your client.

A Market to Limit order is a combination of both types. Like a market order, it’s a request to buy or sell assets at the current market price. If the entire order can’t be filled, then the remaining units retain their current market position as a Limit order. The Limit order’s price is set to the same that the market portion was executed. 

Market to Limit orders function as a Market order first. That means that you won’t be able to place the order outside of market opening times.

Market to Limit orders are available on the Transaction page under the ‘Execute at’ dropdown menu. 

Market to Limit order didn’t fill 

If your Market to Limit order didn’t fill, it could have been due to the number of shares being unable to be filled.

A Market to Limit order places a Limit order at the next bid (for sells) or next ask (for buys). If the market price moves away from the set limit price after the order partially fills, it’s possible that the residual units of the trade will not fill if the market price does not come back to the limit price.

You can update the limit price for outstanding Market to Limit trades in Adviser Online.

Market to Limit orders placed outside of trading hours will not be queued or filled. This is because Market to Limit orders function as a Market order first. This means that you can only place an order while the market is open.

Limit orders can be placed outside of market opening hours.

Once the market opens, you’ll be able to place a Market to Limit order.

Trades for Australian listed securities placed online will be executed on the Australian Stock Exchange (ASX) or Cboe Australia in line with the Macquarie Equities Limited (MEL) best execution policy.

Limit orders enable you to set a minimum sell price and a maximum buy price for your securities. Once the market reaches your limit price, it will purchase or sell as many available units per your request. If the market doesn’t reach your price the order won’t be filled.

You can place a Limit order whenever you want (including outside of market hours). If no trades can be performed at that time, your Limit order will enter the queue to be processed as soon as the market reopens.

Setting the duration of a Limit order

You can set the duration of Limit order for one day only or until filled. Please note:

• One day – the order will stay open until filled or at the close of the trading day
• Until filled – the order will stay open until completed or after 22 business days.

Limit orders are also available as an option on the transaction page in Adviser Online. To place a limit order, click on the ‘execute at’ on the dropdown menu from this page.