At-the-Opening Order

What are At-the-Close Order and At-the-Opening Orders? Simply put, they’re a way of buying and selling stocks and bonds. They’re really a hybrid form of limit order...only instead of limiting the order of 100 shares of Mickey D’s at $45 or better, the ""limit"" is time based. That is, it is placed a minute or less from the close of the market...like 3:59 pm New York time, or the open of the market at 9:31 am New York time.

So...why would someone do this kind of limit order? Well, if a company the day before had printed what looked like a really good quarter, but upon deep inspection the investor who owned the shares thought otherwise, then they would want to take advantage of a high opening print, and just sell at whatever the price was a couple minutes after the open, making the bet that the stock would trade down after bigger, smarter, better analysis was published on the stock itself.