Market Order or Limit Order

Discussion in 'Order Execution' started by traderharley, Jan 6, 2011.

  1. Start them! :)
     
    #21     Jan 10, 2011
  2. Actually the fills in this instance depend on how many shares the buyer wants to buy and how many shares are offered at each level. For example, if the buyer want to Buy 10,000 shares with limit of $10.26 or better and the following stock is offered:
    1000 at $10.01
    2000 at $10.05
    1000 at $10.10
    3000 at $10.17
    400 at $10.20
    600 at $10.26
    1000 at $10.30, the buyer will receive the following fills
    bought 1000 at $10.01
    bought 2000 at $10.05
    bought 1000 at $10.10
    bought 3000 at $10.17
    bought 400 at $10.20
    bought 600 at $10.26 for a total of 8000 shares bought and the buyer will be bidding $10.26 for the remaining 2000 shares. So after the the order has been entered and the partial fills executed, the new quote for the stock will be
    $10.26 to $10.30 20x10. Which means the highest bid is our buyer who is trying to buy 2000 shares at $10.26 and the lowest offer is the seller that is trying to sell 1000 shares at $10.30
     
    #22     Jan 10, 2011
  3. LEAPup

    LEAPup

    You know, I think I will start a few. We all talk about highly technical, and fundamental stuff, etc., but there's something to say for the "bread and butter" threads.
     
    #23     Jan 10, 2011
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    #24     Jan 10, 2011
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    #25     Jan 10, 2011