Define: Buy Order

UK Accounting Glossary

Definition: Buy Order



Advertisement



Full Definition of Buy Order


A buy order is an order to buy a stock or other asset. It is used to add long positions or cover short positions. Buy orders are submitted to a broker, who first attempts to match it against any outstanding buy orders from its own customers. If the buy order can’t be filled internally, it is routed to the appropriate exchange. If the broker is not a member of the exchange, the buy order will be executed by an exchange specialist or market maker. Buy orders are normally initiated by the individual responsible for the trading account. In situations where margin requirements are not being met, a broker may initiate a buy order to cover a short position without first consulting the account holder.


Advertisement




Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/buy-order/
Modern Language Association (MLA):
Buy Order. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 27, 2020 https://payrollheaven.com/define/buy-order/.
Chicago Manual of Style (CMS):
Buy Order. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/buy-order/ (accessed: February 27, 2020).
American Psychological Association (APA):
Buy Order. PayrollHeaven.com. Retrieved February 27, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/buy-order/

Definition Sources


Definitions for Buy Order are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 4th February 2020.