What is a Canceled Order?
In the finance world, a canceled order is an order that is deleted before it is executed.
How Does a Canceled Order Work?
Let's say Jane Smith calls her X instead. John quickly cancels the XYZ order before it is executed. (Usually, there is no fee for doing that.), John Doe, and tells him to buy 1,000 of Company XYZ. John the trade in, but Jane quickly calls back and says she meant to say buy 1,000 shares of Company
Why Does a Canceled Order Matter?
In the real world, canceling orders is almost impossible because trades now execute in fractions of a second -- leaving virtually no time to make thatand change your mind. Sometimes, however, an order be canceled because it doesn't fit the limitations of the trading system. For example, if John accidentally the order in for a billion shares rather than 1,000 shares, the system might cancel the order, assuming it is a typo.
Fill or stock at a particular price or at a particular time and does not want to trigger the significant price change that often occurs when placing traditional or limit orders for a large number of shares.orders are most often used when a person wants to trade a large quantity of