What is a Cancel Former Order?
Cancel former order is a specific type of trade order a client places with a broker in order to cancel an unfilled buy or sell order.
How Does a Cancel Former Order Work?
For example, if a client has an outstanding order to buy 100 shares of Company XYZ at $15 per share and decides he wants to buy the shares at the current market price of $17 per share, he must submit a cancel former order for the pending instructions and replace it with a new order to buy at the market price.
Why Does a Cancel Former Order Matter?
A cancel former order (CFO) is generally used for cancelling a limit order (the order is transacted only once the security reaches a specific price level) when the investor decides the current market price is more advantageous than the limit. CFOs also ensure that orders are not placed more than once, should a client change his mind and wish to alter a current order
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
Less than a quarter of Americans older than 55 has at least $250,000 in savings and...
Read More →
In the June 21 edition of "Principles of Technical Analysis...
Read More →
Investing is hard. The world of finance is best left to...
Read More →
Most income investors are familiar with the tax treatment of common distributions like qualified and...
Read More →
Instead of relying on full-service brokers and the mainstream business press for...
Read More →
