Definition of “At the Close”
“At the Close” (ATC) is an order type used in stock trading where the intention is to buy or sell a security at the closing price of the trading session. This type of order is placed toward the final moments of regular trading hours—typically within the last 30 seconds. Brokers handling these orders do not guarantee execution, as many factors could affect the market conditions and availability of shares.
Examples
Stock X ATC Order: An investor wants to purchase 100 shares of Stock X at the market closing price. They place an ATC order 15 seconds before the market closes.
Sell Order for Stock Y: A trader places an ATC order to sell 200 shares of Stock Y with the objective of selling them at the closing price of the trading day.
Frequently Asked Questions
Can an “At the Close” order impact the stock price?
Yes, placing a large “At the Close” order can sometimes affect the closing price, especially in less liquid markets.
Are “At the Close” orders guaranteed to be fulfilled?
No, there is no guarantee of execution. These orders are subject to market conditions, and availability of buyers or sellers at the closing price.
What is the difference between “At the Close” and “Market on Close”?
“At the Close” orders are intended to be executed exactly at the closing price, whereas “Market on Close” orders aim to be executed as close to the market close as possible, without necessarily requiring the exact closing price.
Can I cancel an ATC order?
Yes, ATC orders can generally be canceled before the final moments of trading; however, once the order is being processed within the final seconds, it may be too late to cancel.
Is there any advantage to using an ATC order?
Using an ATC order can ensure that the trader gets a price reflective of the closing market value, which can be useful for certain trading strategies aiming for day-end valuations.
Related Terms
Market on Close (MOC)
An order to execute trades as close to the market closing price as possible.
Limit Order
A type of order to buy or sell a security at a specified price or better.
Stop-Loss Order
An order placed with a broker to buy or sell once the stock reaches a certain price, to limit potential losses.
Opening Order
An order executed at the opening price of the market.
Online Resources
- Investopedia on At the Close Orders
- SEC - Securities Orders: Basic Concepts
- NASDAQ Understanding Order Types
Suggested Books for Further Studies
- “A Beginner’s Guide to Stock Market Trading” by Matthew R. Kratter
- “Trading for a Living” by Dr. Alexander Elder
- “The Little Book That Still Beats the Market” by Joel Greenblatt
- “Understanding the Stock Market: Basic Concepts” by Michael C. Thomsett
Fundamentals of “At the Close” Orders in Trading Basics Quiz
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