What is a dictionary range order and how is it different from a limit ...

A discretionary range order gives the trader the ability to execute a customer’s limit order within an acceptable range of prices. Discretionary range orders provide flexibility to the trader to adjust the order to current market conditions. Providing a range of acceptable limit prices rather than 1 firm fixed limit price increases the chances that the customer’s order will be executed. It is important to remember that a customer’s limit order may never be executed at an inferior price. For example If a customer placed an order to sell 5,000 shares of TRY at $42, the firm would not be able to execute that order at a price less than the stated limit price. This is true even if the trader feels that doing so would be in the best interest of the client. A discretionary range order would provide the trader with the ability to execute the order within a range of prices which are inferior to the desired limit price. If in our example the customer who wants to sell the TRY at $42 provided the trader with discretionary trading range of 25 cents, the trader would be allowed to execute the order at any price of $41.75 or higher. The trader may enter the discretionary range order as a limit order. It will be displayed at the limit price of $42. When entering the order in the NASDAQ system, the trader will append the discretionary range of 25 cents to the order. If a contra bid shows up within the range of acceptable prices the NASDAQ system will execute the order. Using our example, if a bid of $41.80 appeared in the market place the order would be executed at that price.