Limit-on-Close (LOC) Orders
A Limit-on-close (LOC) order will be submitted at the close and will execute if the closing price is at or better than the submitted limit price.
All LOC orders must be received at Island by 15:58:00 EST, but may not be canceled or modified after 15:50 EST.
Summary of NYSE markets (NYSE, NYSE MKT, NYSE Arca) rules for entering/canceling/modifying limit-on-close (LOC) orders.
- All LOC orders must be received at NYSE markets by 15:50 ET.
- Exception: On expiration days, you cannot enter LOC orders after 15:45 ET to establish or liquidate positions related to a strategy involving derivative instruments, even if these orders would offset a published imbalance.
NYSE markets' rules also prohibit the cancellation or reduction in size of any limit-on-close (LOC) order after 15:50 ET.
Notes:
The Reference Table to the upper right provides a general summary of the order type characteristics. The checked features are applicable in some combination, but do not necessarily work in conjunction with all other checked features. For example, if Options and Stocks, US and Non-US, and Smart and Directed are all checked, it does not follow that all US and Non-US Smart and direct-routed stocks support the order type. It may be the case that only Smart-routed US Stocks, direct-routed Non-US stocks and Smart-routed US Options are supported.
| Products | Availability | Routing | TWS | ||||
|---|---|---|---|---|---|---|---|
| Futures | US Products | Smart | Attribute | ||||
| Stocks | Non-US Products | Directed | Order Type | ||||
| Warrants | Lite | Time in Force | |||||
| Time in Force | |||||||
| View Supported Exchanges|Open Users' Guide | |||||||
Mosaic Example
In this example we wish to pay no more than $41.95 to purchase 1,000 shares in ticker MSFT at the market close. The limit price is currently below the NBBO and the order would not fill if currently submitted. The limit-on-close order may only fill if the shares in MSFT are offered at or below $41.95 as the market closes. The order may also only fill entirely or not at all i.e. clients will not experience a partial fill on LOC orders should an insufficient amount be offered at the limit price at the market close. To use this order type select the desired ticker symbol and click the BUY button. The background will turn blue to indicate an order to purchase the security is being built. Orders to sell would create a red background. Click on the Quantity button to change the number of shares you wish to purchase. If you already have a position in this ticker, the position will be displayed and clicking on the Position button will create an opposing buy order.
From the Order type dropdown menu select LOC and click on the Price input field to change the desired maximum price you wish to pay for the shares. Select an appropriate time-in-force reading and finally click on the Submit button to transmit your order. Should shares in MSFT fall below the limit price, the order may be filled at the prevailing closing price, using the limit price as the ceiling for the transaction.
| Assumptions | |
|---|---|
| Action | BUY |
| Qty | 1,000 |
| Order Type | LOC |
| Market Price | 42.10 |
| Limit Price | 41.95 |
Classic TWS Example
Order Type In Depth - Limit-on-Close Buy Order
Step 1 – Enter a Limit-on-Close Order
XYZ is trading at $18.70 - $18.71. You want to buy 100 shares and believe that the closing price for this stock has historically proven to be the best price of the day. You submit a limit-on-close order by creating a BUY order and selecting LOC in the Type field. In the Lmt Price field, you enter a price of $18.65 and transmit the order. The order is held in the system and is submitted at the close. If the closing price is not at or better than your submitted limit price, the order does not fill and is canceled.
Step 2 – Order Transmitted
You've transmitted your limit-on-close order. The order will be held in the system and submitted at the close. If the closing price is not at or better than your submitted limit price of 18.65, the order will not fill and will be canceled.
| Assumptions | |
|---|---|
| Action | BUY |
| Qty | 100 |
| Order Type | LOC |
| Market Price | 18.71 |
| Limit Price | 18.65 |
Step 3 – At the Close of Market
At the close of market, the market price of XYZ falls to 18.65, which is your limit price. Because the closing price is at or better than your limit price, your order for 100 shares is filled. If the market price of XYZ had been higher than your limit price, the order would have been canceled.
Alternate Scenario – Market Price Falls But Entire Order Cannot Be Filled Immediately
In this alternate scenario, the market price of XYZ falls to 18.65, which is your limit price. However, only 60 shares are available; the entire order for 100 shares cannot be immediately filled. Because this is a Fill or Kill order, the entire order is canceled.
| Assumptions | |
|---|---|
| Action | BUY |
| Qty | 100 |
| Order Type | LOC |
| Market Price | 18.65 |
| Limit Price | 18.65 |
Note:
Any stock or option symbols displayed are for illustrative purposes only and are not intended to portray a recommendation.