LIMIT ORDER PROTECTION RULE Definition

Bookmark and Share

LIMIT ORDER PROTECTION RULE, FIINRA Rule 6541, prohibits member firms from "trading ahead" of customer limit orders that a member accepts. Members handling customer limit orders are prohibited from trading at prices equal or superior to that of the customer limit order without also executing that order at the limit price.

Learn new Accounting Terms

BALANCE SHEET GEARING is the ratio of interest-bearing debt to equity.

LEAD-TIME is the time between the initial stage of a project or policy and the appearance of results, for example, the long lead-time in oil production because of the need for new field exploration and drilling.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.