What is “At the Full Order?”
When you want to buy or sell stocks, bonds, or other investments, you gotta tell your broker exactly what you want. One way to do this is called placing an order “at the full” or “at the figure”.
Here’s the deal: let’s say a stock is trading at a bid price of $49.50 and an ask price of $50.00. The “bid” is the highest price someone is willing to pay for the stock right now, while the “ask” (also called the “offer”) is the lowest price someone is willing to sell it for.
If you tell your broker “buy 100 shares at the full,” you’re saying “I want to buy 100 shares at $50, the nearest round number to the current asking price.” On the flip side, if you say “sell 100 shares at the full,” you’re telling your broker “I want to sell 100 shares at $50, the nearest round number to the current bid price.”
So “at the full” means you’re willing to trade at the closest “round” number to the current market price. For stocks, that usually means the nearest integer dollar amount.
Why use “at the full” orders?
When the market is moving fast and you want to buy or sell quickly, placing an “at the full” order can help you get your trade done ASAP. You’re telling your broker “just do the trade at the best available round number price, I don’t need to haggle over pennies.”
This type of order can be really handy if you’re not too picky on the exact price and you just want in or out of the investment pronto. Gotta make moves, you know?
The nitty gritty on “at the full” orders
Alright, let’s break this down a little more. When you’re talking about “round” numbers for an “at the full” order, you’re usually looking at nice, even dollar amounts for stocks. But for some investments, like bonds or options, you might use a different “round” number.
Like let’s say you’re trading some corporate bonds that are priced at a percentage of their “par” value (usually $1,000). If a bond is trading at a bid of 98.25 and an ask of 98.50, an “at the full” order would be to buy at 98.00 or sell at 99.00. You’re rounding to the nearest full percentage point of par.
A word of caution
While “at the full” orders can be a quick way to trade, they’re not always the best move. If the market price moves away from that round number price you picked, your order might not get filled. Or if the market is super volatile, you could end up paying way more (or getting way less) than you expected.
For example, if that stock jumping around near $50 suddenly spikes to $55 on some crazy news, your “buy at the full” order at $50 isn’t gonna happen. You’ll miss out on the trade entirely.
So before you holler at your broker “at the full!”, make sure you’re okay with a little wiggle room on your price. It’s a trade-off between speed and precision.
When to use “at the full” orders
There’s a time and place for everything, and “at the full” orders are no exception. Here’s when they can really come in clutch:
1. You need to make a trade quickly
Markets move fast, and sometimes you just need to get in or get out ASAP. If you’re making a split-second trading decision, firing off an “at the full” order can be the way to go. No dilly-dallying, just action.
2. The exact price isn’t make-or-break
If you’re not sweating a few cents or dollars on the price, an “at the full” order can be a good tool. You’re saying “close enough!” on the price to make the trade happen. Maybe you’re investing for the long haul and you’re not too hung up on getting the absolute best price to the penny.
3. You’re trading less liquid investments
For some less “liquid” investments that don’t trade as often (think small company stocks or certain bonds), the “bid” and “ask” prices can be further apart. In those cases, an “at the full” order can split the difference and get your trade closer to the midpoint of that bid-ask spread.
When to think twice about “at the full” orders
Alright, we covered when “at the full” orders are clutch, but let’s talk about when they might not be the best call:
1. You’re picky on price
If every penny counts on your trade, “at the full” might not cut it. You’re giving your broker a little room to work with on the price, so if you’re super specific on what you’re willing to pay (or accept), a different order type might be better.
2. The market is on a rollercoaster
In crazy market conditions with prices flying all over the place, “at the full” orders can be risky. You might end up with a way different price than you expected if the market makes a big move. When the market’s extra spicy, you might want more control over your price.
3. You’re not in a rush
If you’ve got time on your side and you’re not feeling the need for speed, you can afford to be pickier on price. No need to rush into an “at the full” order if you can wait for just the right price to come along. Patience, young grasshopper!
Other ways to trade
“At the full” orders are just one tool in your trading toolbox. There’s plenty of other ways to tell your broker what to do:
- Market orders: You’re telling your broker “I want to buy/sell this investment right now at the best available price, whatever that happens to be”. You’re not picky on price, you just want the trade done ASAP.
- Limit orders: Here’s where you get specific on price. A “buy limit” order says “I want to buy at this price or lower” while a “sell limit” order says “I only want to sell for this price or higher”. You’re setting boundaries.
- Stop orders: These babies are all about protecting your profits or limiting your losses. A “buy stop” order says “buy if the price rises to this level”, while a “sell stop” order says “sell if the price falls to this point”. You’re setting tripwires to trigger trades if the market moves a certain way.
The bottom line? There’s no one-size-fits-all when it comes to placing trades. You’ve gotta pick the right tool for the job based on what you’re trading, how fast you need to move, and how picky you are on price.
