pre-arranged trade defined

Discussion in 'Trading' started by rosy2, Oct 12, 2006.

  1. rosy2

    rosy2

    What is a prearranged trade for US exchanges and also for non-US exchanges?

    If another party and I contact each other to post better bids or offers on an electronic exchnage (like globex) does that constitute a prearranged trade?

    I ask because even if I post a better bid or offer it is still open to anyone that wants to hit it so my counterparty is not guaranteed a trade with me.