off-floor order

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Off-floor order

Used for listed equity securities. (1) Order to buy or sell a security that originates off the floor of an exchange; customer orders originating with brokers, as distinguished from orders placed by floor members trading for their own accounts. Exchange rules require that an off-floor order be executed before orders initiated on the floor. Upstairs order. Antithesis of on-floor order; (2) order not handled on the floor but instead upstairs.

Off-Floor Order

An order to a broker to buy or sell a security in which the investor placing the order is not on the floor of the exchange. Specifically, the investor placing the order is not a market maker placing an order on his/her own account. Exchange rules require that off-floor orders be filled before identical on-floor orders.

off-floor order

An order that originates outside an exchange to trade a security. Orders entered by individual investors with brokers are off-board orders because they originate off the exchange. Off-floor orders have precedence over orders originating on the exchange floor. Compare on-floor order.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.