An order that is sliced and executed in proportion to market volume and is not linked to a given price or period of time. In other words, target volume strategies (TVOL) orders need not be filled in their entirety. For example, a trader may seek to purchase 6% of the average volume of a firm’s shares and his broker will implement the trades as soon as possible. A TVOL order allows an investor to participate in the market at the rate targeted by the trader. The trader can modify the participation rate as he deems necessary.
June 11, 2024
