Simple English definitions for legal terms
Read a random definition: pound-breach
A percentage order is a type of stock market order where a trader specifies a certain percentage of a stock's trading volume to be bought or sold after a fixed number of shares of the stock have been traded. For example, a trader may place a percentage order to buy 10% of a stock's trading volume after 100,000 shares have been traded.
This type of order is useful for traders who want to enter or exit a position based on the stock's trading activity. By waiting for a certain percentage of the trading volume to be reached, traders can avoid buying or selling at unfavorable prices.
For instance, if a trader wants to buy a large amount of a stock, they may place a percentage order to buy 10% of the trading volume after 100,000 shares have been traded. This way, they can avoid buying a large amount of shares at a high price if the stock suddenly spikes in value.