Orders arriving in the trading system may be of different types.
The most frequently used one is the limit type order. An order with a limit price can be fulfilled during trading exclusively
at the price specified or better than that (a lower one, in the case of a buy
and a higher one, in the case of a sale). A limit order can be placed in any period
of trading.
An order without the indication of a price shall be recorded in the trading system
as a ‘market’ order. A market-type order is fulfilled at the moment when the order is entered;
if it cannot be fulfilled immediately, it shall be withdrawn from the Order Book.
A market order can be placed only in the free period of trading. In the MMTS I
(cash market) system, a market-type order is matched only at the best counter-order
price. If at the best price level, there is no sufficient quantity, then the unfilled
portion of the market order shall be automatically withdrawn by the system. In
the MMTS II (derivatives market) system, a market-type order is concluded not
only at the best counter-order price, but a series of transactions at different
prices will be made, in order to match the total quantity indicated in the market
order. If there are no further counter-orders in existence in the Order Book,
than the remaining quantities of the market-type order shall be withdrawn.
In the free period of trading, the limit and market orders can also be designated
as 'stop' orders. Simultaneously with the “stop” designation for a limit- or market-type order,
a trigger price limit shall also be set. A stop limit or stop market order is
a conditional order, to be entered into the Order Book only if on the market a
transaction is made at the trigger price indicated in the order. At the moment
a transaction at such price takes place, the inactive stop limit order shall be
activated and entered into the Order Book as a limit order, and the inactive stop
market order as a market order. From that moment on, it behaves like any other
order in the Order Book.
The trading system accepts ‘all-or-none’ orders only for equities and debt-type securities. An ‘all-or-none’ order is
interpreted in such a way that the whole quantity indicated in the order shall
be filled in its entirety at the same time or not at all. An order marked as all-or-none
is accepted by the trading system only if the order’s value is higher than 25
million forints (in the case of securities traded in euro, one hundred thousand
EUR). Also limit- and market-type orders, can be specified as “all-or-none” orders.
In the case of ‘minimum quantity’ orders, in addition to the total quantity, the order shall specify the minimum
amount to be filled at the same time, simultaneously. The quantity remaining in
the order in excess of the minimum quantity can also be matched by trading units.
A minimum quantity order can only be placed for government securities in the MMTS
trading system.
Orders types
