Define: Sell Order

Business, Legal & Accounting Glossary

Definition: Sell Order



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Full Definition of Sell Order


A sell order is an order to sell a stock or other asset. A sell order can be used to add short positions or close long positions. A sell order is submitted to a broker, who first attempts to match it against any outstanding sell orders from its own customers. If the sell order cannot be filled internally, it is routed to the appropriate exchange. If the broker is not a member of the exchange, the sell order will be executed by an exchange specialist or market maker.

A sell order is normally initiated by the individual responsible for the trading account. In situations where margin requirements are not being met, a broker may initiate a sell order to close a long position without first consulting the account holder. A sell order can come in many forms (i.e. market orders, limit orders, good ’til cancelled orders, etc.).


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Definition Sources


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

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

This glossary post was last updated: 5th February, 2020