What defines a market-not-held order?

A market-not-held order gives the broker discretion regarding the timing of the execution while ensuring that the client has control over the price at which the trade occurs. This means that the broker can choose when to execute the order, but it must be done at market price. The key aspect of this type of order is the discretion granted to the broker, allowing them to determine the optimal timing based on current market conditions, without the client needing to pinpoint a specific moment for execution. This flexibility can help achieve a better price depending on market dynamics, making it beneficial in volatile or illiquid markets.

In contrast to other options, the notion that a client specifies the timing or that the order can be split between brokers does not apply to a market-not-held order. Also, while the order must be executed at market price, it is the broker's discretion on timing that fundamentally characterizes this type of order.