Orders / Pair 28 of 41
A rule that runs by itself, and a date somebody prefers
Two dates sit around an open order. They arrive in similar language and they feel about equally binding. Only one of them will do anything on its own.
Two dates, and only one is a rule
Both dates get into your head the same way, as something to be met. Both come with a sense that trouble follows if the date goes by. That sense is accurate for one of them and completely misplaced for the other.
Confusing the two is easy in an ordinary week and easiest of all in a slow one, when the order is quiet and the only recent thing you have read is somebody asking you to hold on until a particular day.
A rule of the market
The market defines a point at which an open order settles by itself. It runs whether anybody mentions it, whether anybody agrees with it, and whether either side is paying attention. Nobody has to act for it to arrive.
A stated preference
A person has named a day they would like you to wait until. It carries no force in the market's rules and it changes no clock. It is useful as information about what somebody expects and it is nothing more than that.
What the rule says and what a person says
A rule is written into how the place works. You can read it in the market's own terms, it applies to every order of that type, and it applies to you whether you have read it or not. That last part is the one that catches people.
A preference is written into a message. It applies to one order, it exists only while the person who stated it still means it, and it can be revised in a sentence. Nothing about it is enforced by anything.
When the two dates conflict, the rule is the one that will actually happen. A seller asking you to wait past the market's settlement point is asking, whether they realise it or not, for your money to be released automatically before the wait is over. That is worth spotting early, and a request for more time covers what the honest version of that request looks like.
Ask who can move it
The test that separates them
Ask who is able to move the date. If the person who named it can push it back at will, it is a preference. If moving it needs the market's own mechanism, it is a rule.
- Write both dates down next to each other.
- For each one, name who would have to act for the date to change.
- A date that changes on somebody saying so is a preference.
- A date that changes only through a control on the order screen is the rule, and that control is the only thing that will move it.
The costs are not close
- If you treat a preference as the rule
- You wait past a date that never had any force, and you may miss the market's real deadline while doing it politely. The money settles on its own and no ruling is available afterwards. This is the direction that empties the balance.
- If you treat the rule as a preference
- You act early. You extend, or you raise the matter, or you ask a question sooner than somebody would have liked. The cost is a slightly cooler exchange and nothing else.
Where the two dates cross
Keep the pair of dates visible in the same place. The moment a stated preference lands on the far side of the market's own settlement point, you have a decision to make, and you have to make it before the earlier of the two dates rather than after. The costs page collects the same asymmetry across every pair on this site.
Most of the time the two dates do not conflict at all, and the whole question dissolves. The wait somebody asks for is short, the market's clock is long, and nothing needs deciding. It is only in slow orders, where a preference has been revised once or twice already, that the later date quietly slides past the earlier one and nobody says so.
There is no announcement when that happens. The market does not warn you that a request now sits beyond its own settlement point, and the person asking has no particular reason to have checked. Which means the only person in the arrangement who is in a position to notice is you.
Handling each date
- If it is the market's timer
- Find out exactly when it lands and what it does when it lands. Then decide, before that date, whether you are extending it or asking for a decision. Doing nothing is itself a choice, and it is the choice that releases the money.
- If it is a stated preference
- Take it as useful information about what somebody expects and weigh it against the rule. You are free to honour it, but only inside whatever room the market's own clock actually leaves you.
Questions readers send about this pair
What happens if I just ignore the automatic timer?
It runs anyway. That is what makes it a rule rather than a request. When it lands, the order settles by itself and the options that depended on a held balance go with it.
Can a seller extend the market timer for me?
No. Extensions of that kind are actions on the order screen, and the control belongs to the side the timer runs against. A promise to sort it out is not the same as the clock moving.
Does a vendor deadline count for anything in arbitration?
Not much on its own. It shows what was expected, which can be useful background, but a ruling rests on the market's rules and on what the record shows rather than on what either side would have preferred.