Not-Held Orders (NH Orders)

Definition

The term Not-Held refers to broker instructions that permit discretion in order to obtain the best possible price on a security.  Not-Held orders are typically associated with market or limit orders.

Explanation

If a trader has sufficient trust in their broker's judgement, they may decide to place a Not-Held (NH) order.  This instruction allows the broker to use their discretion both with respect to the timing of a trade as well as the price paid or received on the security.  This type of order is more common when trading international stocks.

Since the order is stating the trader has more faith in the ability of the broker to obtain the best possible price than their own; this order holds the broker harmless in the event the trader suffers a monetary loss.  Generally, there are two types of NH orders:

  • Market Not-Held:  a market order in which the trader does not want to automatically execute an order at market; thereby allowing the broker to determine the best time and price for execution.
  • Limit Not-Held:  a limit order in which the trader allows the broker to miss the specified price points placed on the order.

Related Terms

market peg orders, National Best Offer, National Best Bid, market order, limit order, day orderprimary peg orderslong position, alligator spread, dark pools, discretionary orders, Do Not Reduce orders, midpoint peg ordersorder book