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58-8
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A trading order can either be a limit order or market order:
- A limit order is an order for which a principal has set a certain price where the order is satisfied at or below the price in the case of a buy order, or at or above the price in the case of a sell order.
- When giving a market order, a principal does not set a certain price and this order may be satisfied within the permitted price range of the security on the day. However, newly listed common stocks during the period when no price fluctuation limit is imposed, securities subject to no fluctuation limit, securities for which extended matching intervals have been implemented under the bylaws or rules of the TWSE, or those otherwise identified by the TWSE shall not be traded as market order.
Prior to matching a trade, a market order shall have its reference price converted based on the following principles, with the converted price as its order price:
- For a buy order, the converted reference price shall be the most recent trade price of the security (or opening auction reference price in the absence of a most recent trade price), maximum limit buy order, or maximum limit sell order, whichever is higher. If the converted reference price is the same as the maximum limit buy order, it shall be matched before a limit order where price priority under Article 58-2 applies.
- For a sell order, the converted reference price shall be the most recent trade price of the security (or opening auction reference price in the absence of a most recent trade price), minimum limit buy order, or minimum limit sell order, whichever is lower. If the converted reference price is the same as the minimum limit sell order, it shall be matched before a limit order where price priority under Article 58-2 applies.
In terms of period of validity of a trading order, the order is either valid on the current day, canceled if not immediately satisfied in one trade, or canceled if not all trade is immediately satisfied in one trade:
- "Valid on the current day" describes an order that is valid during the current session if not all order is satisfied in one trade and the remaining unsatisfied volume is not withdrawn.
- "Canceled if not immediately satisfied in one trade" describes that when a trading order is entered, if not all order is satisfied in one trade, the remaining unsatisfied volume will be canceled.
- "Canceled if not all order is immediately satisfied in one trade" describes that when a trading order is entered, if not all order is satisfied in one trade, all the order shall be canceled.
A trading order that is a market order, or with period of validity that is canceled if not immediately satisfied in one trade or canceled if not all order is immediately satisfied in one trade may only be entered during the period allowed for continuous trading under Article 58-3. During the period for call auction, the TWSE withdraws trading orders previously entered as market orders that are valid on the current day.
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