The Other Side of the Trade

Discussion in 'Order Execution' started by thomas3133, Jun 18, 2011.

  1. Hello,

    I have two questions related to order execution:

    1. If I submit a spread order (say, put vertical credit spread with two legs) does the order will be filled only if there is an exact opposite spread order that fits the spread limit (that is, put vertical debit spread with the same strikes)?
    Or there could be a situation in which the order will be filled even when there is no such exact opposite spread order but there are rather two single positions (not spreads) which are the opposite positions to the spread separate legs that in aggregate fit my spread limit?

    2. Does the other side of the trade must be a market-maker or can it be any party (including a retail trader)? Is there any difference between single or spread orders in this regard?