What is an “At the Open” Order?

An “at the open” order is a kind of order you can give to buy or sell stocks, bonds, ETFs, or other securities. When you place one of these orders, you’re telling your broker “I want to buy (or sell) X shares of this security as soon as the market opens for trading today, at whatever price it’s trading at then.”

It’s All About Timing

The key thing about at the open orders is the timing. Regular “market orders” can get filled at any time during the trading day, at whatever price the security is at when your broker gets around to executing the trade. But an at the open order says “do this trade right when the opening bell rings.”

The Opening Price is What You Get

See, every security starts the day at a certain opening price. For stocks, it’s based on a kind of auction where traders put in bids and offers in pre-market trading to set the price. With an at the open order, you don’t know exactly what price you’ll get – but it’ll be whatever that opening auction price is.

The Upside: You’re First in Line

The main reason you might use an at the open order is to make sure your trade happens right away at the start of the trading session. Maybe you’ve done your research, picked a stock, and you’re convinced it’s gonna take off as soon as the market opens. You want to jump on that opportunity ASAP!

No Waiting Around

With an at the open order, you’re not stuck waiting, biting your nails and watching the price move while you wonder when your market order will go through. As long as there are shares available at the opening price, boom, you’re in the game from the first tick.

The Downside: No Price Guarantees

But there’s a catch. While at the open orders are first in line, you’re also flying a bit blind. The opening price might be higher or lower than you expected based on the previous day’s closing price. News, earnings reports, economic data – all kinds of things can move a stock in pre-market trading.

You Get What You Get

So if you place an at the open order to buy, and the stock gaps up in price – surprise! You just paid more than you probably planned on. Or if you’re selling and it gaps down, well, that’s a bummer. The price is the price, and you’re locked in.

At the Open Orders: Use ‘Em Wisely

So like any tool in the trader’s toolbox, you gotta know when it makes sense to use an at the open order. If you absolutely must own a certain stock or ETF and you believe the price is only going up from here, then maybe the at the open order gets you in the game before it takes off. You’re accepting some uncertainty around the exact price, but you’re prioritizing the timing.

Not for the Indecisive

On the flip side, if you’re not completely sure about a trade, or you’re not comfortable with a bit of a surprise when it comes to the price, then hey, maybe chill out and use a limit order instead. Those let you set the maximum price you’re willing to pay (or minimum you’re willing to accept if selling).

When At the Open Orders Get Cancelled

Now, there is a little asterisk with at the open orders. They’re not always guaranteed to go through. If there aren’t enough shares available at the opening price to fill your whole order, the leftover part doesn’t go on waiting around. It just gets cancelled.

No Partial Fills Here

See, at the open orders are an all-or-nothing kind of deal. It’s not like a regular market order, where if there aren’t enough shares at the current price, it’ll grab what’s available and then keep trying to fill the rest later. With an at the open order, it’s fill the whole thing at the opening price or nothing at all.