iTechGuides is reader-supported. When you buy through links on our site, we may earn an affiliate commission. As an Amazon Associate I earn from qualifying purchases. Learn more
Choose a closing-auction order when your priority is participation in the market’s official closing print. Choose a regular sell limit order when your priority is refusing to sell below a specified price while the continuous market is open. Neither order guarantees both an exact official closing price and execution at your preferred minimum. A regular limit can execute before the close, partially execute, or remain unfilled. A Limit-on-Close (LOC) order targets the closing auction but can be rejected by its price condition or left unexecuted.
The phrase “pre-close limit order” causes confusion because it may describe either a normal continuous-market limit order or an auction-only LOC instruction. Those are different order types with different timing, execution rules, and failure modes.
Start with the outcome you need
Before selecting an order type, decide which of these outcomes matters most:
What’s actually slowing this PC down?
Pick the symptom - the matching free tool is one click away.
- Participation in the official close: Use a market-on-close (MOC) order if execution at the closing auction is the overriding objective and you accept the price established by the auction. Use an LOC order if you need a price condition as well.
- A minimum acceptable sale price: Use a regular sell limit order. It remains eligible in the continuous order book and can execute whenever buyers meet your limit, including before the closing auction.
- Both the close and a price floor: An LOC is the closest fit, but the trade-off is non-execution if the closing price is below your sell limit. You cannot guarantee both conditions.
For a sell order, “at or better” means an execution price at least as high as your limit. For a buy order, it means a price at or below the limit.
#1 Best Overall
How the three relevant order types differ
Regular sell limit order
A regular limit order states the lowest price at which you are willing to sell. If you enter a sell limit at $50, executions at $50 or higher are acceptable; executions below $50 are not. The order participates in the continuous market, so it may execute at 10:15 a.m., 2:30 p.m., or near the close if displayed and matched under the venue’s priority rules.
The U.S. Securities and Exchange Commission (SEC) says that limit orders do not guarantee execution. A market can touch or move through your price without filling the entire quantity because available opposing interest may be insufficient, another order may have time priority, or the market may move away before a match occurs.
Market-on-Close (MOC) order
An MOC order is intended for the closing auction and does not set a maximum or minimum price. For a sell MOC, the order accepts the price produced by the closing process, subject to the exchange and broker’s rules. That makes it useful when tracking or transacting at the official close matters more than controlling the exact price.
An MOC is not the same as entering a market order a few seconds before 4 p.m. A market order submitted during continuous trading can execute immediately at available prices and may not participate in the closing auction at all. The broker’s order ticket must specifically identify the close instruction.
Limit-on-Close (LOC) order
An LOC is an auction-only instruction with a limit condition. Nasdaq defines an LOC as executable only in the Closing Cross and only when the cross price is equal to or better than the entered limit. For a sell LOC, the closing price must be at least your limit; for a buy LOC, it must be no higher than your limit.
An LOC therefore combines a timing requirement with a price requirement. If the closing auction establishes a sell price below your limit, the order should not execute. If the auction price satisfies the limit but there is not enough contra-side interest, the order may still receive a partial fill or no fill, depending on the venue’s allocation and residual-order rules.
Rank #2
- As a day trader, you can live and work anywhere in the world. You can decide when to work and when not to work.
- You only answer to yourself. That is the life of the successful day trader. Many people aspire to it, but very few succeed. Day trading is not gambling or an online poker game.
- To be successful at day trading you need the right tools and you need to be motivated, to work hard, and to persevere.
| Order | Where it can execute | Price condition | Can execute before the close? | Primary trade-off |
|---|---|---|---|---|
| Regular sell limit | Continuous market; venue-specific sessions | At or above the entered limit | Yes | May fill early, partially, or not at all; does not target the official close |
| MOC | Closing auction | No trader-set price floor | No, when correctly designated as MOC | Targets the close but accepts the auction price |
| LOC | Closing auction (and any venue-defined post-close mechanism) | At or above the sell limit, or at or below the buy limit | No, under the normal auction definition | Protects the limit but can miss the close entirely |
How a closing auction determines the official price
A closing auction gathers eligible buy and sell interest and seeks a single price that maximizes executable volume while applying the exchange’s tie-breaking and priority rules. The resulting trade is the official closing print used by many market-data feeds, benchmarks, fund valuations, and end-of-day calculations.
Information published before the close
On the New York Stock Exchange (NYSE), pre-close information can include paired shares, unpaired shares, imbalance size, and an indicative clearing price. Paired quantity is the amount that could trade at the current indicative price; unpaired quantity shows the remaining imbalance. These values can change rapidly as participants submit, cancel, or modify eligible orders.
NYSE timing example
The NYSE’s 2024 fact sheet lists 3:50 p.m. Eastern as the normal entry cutoff for MOC and LOC orders and 4:00 p.m. Eastern as the start of the closing process. The 3:50 p.m. figure is an NYSE example, not a universal deadline for every exchange, security, or broker. A broker may stop accepting, changing, or canceling an order earlier than the exchange cutoff.
After the cutoff, the exchange disseminates imbalance information and continues the closing procedure under its published rules. A late submission that appears to be accepted by a broker may be held, rejected, or routed under a different session rule; the broker’s confirmation is the controlling indication of whether the order is actually eligible.
Nasdaq and other venues
Nasdaq uses its own Closing Cross rule set, terminology, cutoff schedule, and handling of residual interest. Nasdaq rules also describe an Extended Trading Close path for certain unfilled LOC orders when the official closing price is at or within the order’s limit. Eligibility, timing, and residual handling are rule-specific, so an order ticket that says “LOC” on one venue is not evidence that another venue will treat it identically.
Recommended Free Tools
Which order fits each exit objective?
| Your priority | Usually the better fit | Why | Main risk |
|---|---|---|---|
| Match the official closing print | MOC, if you accept an unconstrained price | Designed to participate in the closing trade | The auction price can be materially different from the last quoted price |
| Match the official close while enforcing a minimum sale price | LOC | Targets the closing auction and rejects prices below your sell limit | No execution, or a partial execution, if the limit is not satisfied or liquidity is insufficient |
| Sell only at or above a chosen price during the day | Regular sell limit | Works in the continuous market whenever the price and available liquidity meet your terms | It can execute before the close and does not promise the official closing price |
| Keep an order active after the closing auction | Only an order type and time-in-force that expressly permit it | Some venues provide a post-close mechanism for eligible residual LOC interest | Rules and broker implementations differ; an ordinary limit may simply expire or remain for another session |
How to choose and place the order
- Define “exit price.” Decide whether you mean the official exchange close, a minimum acceptable price, or a price at a particular time. “At 4 p.m.” is not precise enough because exchanges have cutoff and closing-process rules.
- Identify the listing venue and time zone. Confirm whether the security is listed on NYSE, Nasdaq, or another venue, and convert the published cutoff to the time zone displayed by your broker.
- Check the available order labels. Look specifically for MOC, LOC, “on close,” “closing auction,” or a venue-specific equivalent. Do not assume that a generic “limit” ticket is an LOC ticket.
- Set the direction correctly. For a sell LOC, enter the lowest price you will accept. For a buy LOC, enter the highest price you will pay. Verify quantity, account, and time-in-force before sending.
- Read the cutoff and modification rules. Confirm when the broker stops accepting new orders and when it stops allowing cancellations or price/quantity changes. Those times can be earlier than the exchange deadline.
- Review the confirmation. The confirmation should show the order type, limit price if applicable, quantity, venue or routing instruction, and whether any residual can participate in a post-close process.
- Monitor status and imbalance data when available. A working LOC is not a guarantee of a fill. Changes in indicative price, paired quantity, and imbalance can alter the likelihood of execution until the cutoff.
- Plan the fallback. Decide in advance whether an unfilled order should be canceled, left for the next session, replaced with a new limit, or handled through an allowed post-close mechanism. Do not submit a replacement blindly; check whether the original residual is still live.
What happens when the order does not fill?
Regular limit order
A regular limit order can remain open according to its time-in-force. A day order generally expires at the end of the applicable trading session, while a good-till-canceled instruction may remain active under the broker’s stated expiration policy. A partially filled order leaves a residual quantity that follows the same time-in-force unless the broker or venue cancels it.
Rank #3
- Language: english
- Book - trading: technical analysis masterclass: master the financial markets
- It is made up of premium quality material.
If the market reaches your limit but no execution appears, check whether the quoted price was actually executable, whether your order had price-time priority, whether the quote was in a different trading session, and whether the displayed size was smaller than your order.
LOC order
If the closing price fails your sell limit, the order should not execute in the closing trade. If the price meets the limit but available volume is insufficient, the venue may execute only part of the quantity. The remaining balance is handled under that venue’s rules: it may be canceled, remain eligible for a defined post-close mechanism, or be subject to another residual process.
The SEC’s Investor.gov bulletin describes an on-close order this way: “On Close A market or limit order that must be executed at the closing price. Any balance not executed as part of the closing trade is canceled.” This is the SEC’s general description; the exchange and broker determine the exact implementation and any venue-specific exception.
Do these 3 things before closing this tab:
1Clear out junk files and repair common Windows errors2Scan for outdated or missing drivers - takes under a minute3Repair Windows errors before they cause bigger problemsMOC order
An MOC normally seeks execution in the closing auction without a price limit. If the auction cannot execute the entire quantity, the venue’s residual rules apply. Do not assume that an MOC balance automatically converts to a regular limit order or remains active after 4 p.m.
Can any order guarantee the exact closing price?
No. A closing-auction order is designed to seek the official closing print, but the print is discovered by the auction and can differ from the last trade, midpoint, or indicative price seen earlier. An MOC removes a trader-set price floor, while an LOC can miss the trade if its limit is not satisfied. A regular limit can enforce a minimum price but has no obligation to execute and is not tied to the official close.
“Guarantee” also has two separate meanings that should not be conflated:
Rank #4
- Ideal for Gifting
- Ideal for a bookworm
- Comes with Proper Binding
- Price certainty: the execution, if it occurs, will not be worse than your limit.
- Execution certainty: the order will fill, regardless of available liquidity or auction conditions.
A limit order can provide the first condition but not the second. An MOC may improve the chance of participating in the close but does not provide a trader-selected price. An LOC requires both a qualifying auction price and enough matching interest.
Free tools Windows power users keep installed
One-click scans. No signup required.
Common mistakes and how to avoid them
Confusing a regular limit with an LOC
Entering a sell limit at 3:55 p.m. does not automatically convert it into a closing-auction order. It may execute in continuous trading, be rejected because the session is ending, or remain open under its time-in-force. Select the explicit on-close type if the auction is the objective.
Using the wrong side of the price rule
A sell LOC at $50 rejects a closing price of $49.99 but can accept $50.00 or $50.25. A buy LOC at $50 works in the opposite direction. Reversing this logic can produce an unintended non-execution or an order that accepts a price you did not mean to accept.
Waiting until the exchange cutoff
Broker systems can impose earlier deadlines for new orders, edits, and cancellations. Network delays, suitability checks, account restrictions, and market-data interruptions can also prevent a last-second submission. Treat the broker’s displayed cutoff as the operational deadline.
Assuming the last quote is the closing price
The last continuous-market trade is not necessarily the official close. Closing-auction interest can change the price and volume. An indicative clearing price is informational until the auction completes.
Ignoring halts and special trading days
Trading halts, early closes, market-wide events, corporate actions, and exchange holidays can alter the closing procedure. Verify the security’s current calendar and venue notice before relying on a standard 4 p.m. assumption.
Best Value
- Comes with secure packaging
- Easy to read text
- It can be a gift option
Assuming all residual orders disappear or persist
Residual handling depends on order type, venue, and time-in-force. Read the confirmation and the broker’s explanation of canceled, expired, and post-close quantities rather than inferring behavior from another exchange.
Worked examples
Example 1: Minimum price matters more than the close
You own 1,000 shares and will not sell below $50. During the afternoon, the stock trades between $49.80 and $50.40. A regular sell limit at $50 can fill in pieces whenever buyers bid $50 or higher. If it fills at 2:45 p.m., you no longer participate in the close. If the market never provides enough executable demand at $50, some or all of the order remains unfilled.
Example 2: The official close matters, but you need a floor
You enter a sell LOC for 1,000 shares at $50. The closing auction establishes $50.18, so the price condition is satisfied. You may receive a full or partial fill depending on auction volume and allocation. If the auction establishes $49.90, the order does not execute because the price is below your sell limit.
Outdated Drivers Are Slowing You Down
One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchPC Slower Than It Used to Be?
A free scan shows the junk files, broken settings and background clutter dragging Windows down - then fixes them in one click.Free scan · Windows 10 & 11Example 3: You need the close and accept price uncertainty
You enter an MOC for 1,000 shares. The closing auction establishes $49.90, and the order executes under the venue’s closing rules. You achieved participation in the close but accepted a price below the $50 level that an LOC would have required.
Example 4: A late regular limit order
You submit a regular sell limit at $50 at 3:59 p.m. The stock is offered at $50.05, but the order is not filled before continuous trading ends. Unless the order’s time-in-force and venue rules carry it forward, it may expire without participating in the closing auction. A regular limit is not a substitute for MOC or LOC.
Pre-submission checklist
- Have you chosen between the official close and a minimum acceptable price?
- Is the order explicitly labeled regular limit, MOC, or LOC?
- Is the sell limit expressed as the lowest acceptable price?
- Have you confirmed the listing venue and time zone?
- Have you checked the broker’s order-entry, modification, and cancellation cutoffs?
- Do you understand whether partial fills are possible?
- Do you know what happens to an unfilled balance?
- Have you checked for an early close, halt, holiday, or special venue procedure?
- Does the confirmation show the intended quantity, price, time-in-force, and routing instruction?
Bottom line for the decision
Use a regular sell limit when protecting a minimum price is the non-negotiable requirement and execution before the close is acceptable. Use an LOC when the closing auction is important but you will decline a closing price below your floor. Use an MOC only when participation in the official close outweighs control over the exact price. Verify the current exchange rule and broker implementation every time, because cutoffs and residual-order handling are venue-specific and can change.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
The Tool Desk
Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →
