The status "verified cancelled" signifies that a request to cancel an order has successfully gone through, but only after a portion of that order was already executed. This means the cancellation request was fulfilled, yet not before some part of your original order had already been completed.
Understanding "Verified Cancelled" in Trading
In the world of financial trading, especially with stock, options, or cryptocurrency exchanges, an order goes through various stages. When you place an order, it might be fully executed, partially executed, or cancelled. The "verified cancelled" status specifically addresses a scenario where a cancellation request was honored, but not before a fraction of the order was already matched and completed.
Key Characteristics of "Verified Cancelled"
This specific status combines elements of both execution and cancellation, indicating a nuanced outcome for a trading instruction.
- Successful Cancellation Request: Your instruction to cancel the order was processed and accepted by the trading system. The order is no longer active in the market for the remaining quantity.
- Partial Execution: Crucially, before the cancellation could fully take effect, a certain quantity of your order was already bought or sold. This portion of the order is complete and irreversible.
- Not Fully Executed: The entire original order was not completed. Only a part of it was, and the rest was cancelled.
- Order Status Update: It's a definitive update from the brokerage or exchange, confirming both the partial fill and the subsequent cancellation.
Why "Partially Filled" Matters
The term "verified cancelled" is often seen alongside or inherently implies "partially filled" because the cancellation occurs after some action has taken place. This is particularly relevant when:
- Market Volatility: In fast-moving markets, prices can change rapidly. An order might get partially filled at one price before you decide to cancel or before the market moves beyond your desired price range.
- Liquidity: If an asset has low liquidity, your large order might only find buyers/sellers for a portion of its size before you pull it.
- Order Type: Certain order types, like market orders in volatile conditions, can execute immediately for available quantities, even if you attempt to cancel quickly. Limit orders might also be partially filled if a matching price is found for a portion of the order.
Practical Implications for Traders
Understanding this status is vital for managing your portfolio and capital effectively.
- Financial Impact: You are now the owner of the partially filled portion of the order (if buying) or have sold that portion (if selling). The funds or assets corresponding to this part are committed.
- Remaining Capital/Assets: The capital or assets allocated to the cancelled portion of the order are now released and available for other trades.
- Record Keeping: It's essential to note this status for accurate record-keeping, tax purposes, and evaluating trading strategies.
- Strategy Adjustments: A frequent occurrence of "verified cancelled" might indicate a need to adjust your order placement strategy, consider different order types, or reassess your timing in the market.
Examples of Verified Cancelled Orders
Let's illustrate with a common scenario:
- Scenario: You place an order to buy 100 shares of Company X.
- Action: You quickly decide to cancel the order because you saw new market information.
- Outcome: Before your cancellation request was fully processed and the order removed from the market, 30 of the 100 shares were successfully purchased. The remaining 70 shares were then cancelled.
- Status: Your brokerage will show this order as "Verified Cancelled" (or "Verified Canceled/Partially Filled") for the original 100 shares, and your account will reflect ownership of 30 shares of Company X.
How "Verified Cancelled" Differs from Other Order Statuses
It's important to distinguish "verified cancelled" from other common order statuses to fully grasp its meaning.
| Order Status | Description | Key Difference from "Verified Cancelled" |
|---|---|---|
| Pending/Open | The order has been submitted but not yet executed or cancelled. | No part of the order has been filled yet. |
| Filled/Executed | The entire order has been successfully completed. | The entire order was completed, not just a portion before cancellation. |
| Partially Filled | A portion of the order has been executed, but the remaining part is still open. | The remaining part is still active and awaiting execution, not cancelled. |
| Cancelled | The entire order was cancelled before any execution occurred. | No portion of the order was filled prior to the cancellation. |
| Rejected | The order was not accepted by the exchange or brokerage due to an issue. | The order was never validly placed in the market; no fill or cancellation occurred. |
Managing Verified Cancelled Orders
For traders, acknowledging a "verified cancelled" status involves a few considerations:
- Review Your Statement: Always check your trade confirmations and account statements to confirm the exact quantity that was filled and the associated price.
- Re-evaluate Your Strategy: If the partial fill and cancellation were unexpected, consider what led to it. Was it market conditions, the order type chosen, or execution speed?
- Consider Re-entry: If you still wish to execute the trade for the remaining quantity, you will need to place a new order for that specific amount. The "verified cancelled" order cannot be reactivated.
- Understand Your Broker's Policies: Different brokers might display these statuses slightly differently or have varying rules regarding order cancellations. Familiarize yourself with your platform's specific terminology.
By understanding "verified cancelled," traders can accurately interpret their order outcomes, manage their positions more effectively, and refine their trading strategies for better results.
