What is the difference between market order, limit order, at-auction (market) order, at-auction limit order,
enhanced limit order and special limit order?
Market Order
When the market is opened, a market order will be executed at the best bid or ask price available. If
a market order is placed when the market is closed, it will be executed at the bid or ask price when
the market opens. A market order, unless it is a Fill or Kill (FOK), guarantees an execution but does
not guarantee a price. A market order could be executed at a higher or lower price than what was quoted
to you. Please note that market orders are not allowed for Hong Kong market trading.
Singapore Market: The Market Order type can only be entered during trading hours, from 08:30 – 17:04
Limit Order
When you place a limit order, you are stating the price at which you wish to buy or sell a stock. If
that price is not met, your order will not be executed. A limit order guarantees a price but does not
guarantee an execution. A limit order can be executed at a better price than the limit price you set.
Orders on the Hong Kong Market
Limit Order:
A Limit order allows an order to be matched only at a specified price. A sell limit order cannot be
below the current bid price whereas a buy limit order cannot be above the current ask price. Any unmatched
quantity will be placed in the price queue.
Enhanced Limit Order (ELO) and Special Limit Order (SLO) are the two order types available to Hong Kong
trading:
At-auction(Market) Order:
An at-auction order is a market order without a specified price. It enjoys a higher auction matching
priority than an at-auction limit order. It will be cancelled automatically after order matching.
At-auction Limit Order:
An at-auction limit order is a limit order with a specified price. After order matching:
Unfilled at-auction limit orders in the pre-opening session with input price not deviating nine times
or more from the prevailing nominal price will be converted to limit orders at the input price and carried
forward to the continuous trading session
Enhanced Limit Order (ELO):
An ELO is similar to a Limit order. The difference between the two is that an ELO allows an order to
be matched up to 10 price queues at one time. A buy order input price can be made at a price of 9 spreads
above the current ask price and a sell order input price can be made at a price of 9 spreads below the
current bid price. Any unfilled quantity of an ELO after matching will be converted into a Limit Order
and placed in the price queue at the order input price
Special Limit Order (SLO)
A SLO allows an order to be matched up to 10 price queues, 9 spreads away, at one time as long as the
traded price is better than the input price. There are no price restrictions on a SLO. However, the
buy order input price must be at or above the best ask price, whereas the sell order input price must
be at or below the best bid price. Any unfilled quantity of an SLO after matching will be cancelled.
More information about ELO and SLO is available on the Hong Kong Stock Exchange (HKEX) web site.