Which is executed first

Discussion in 'Order Execution' started by ProgrammerGuy, Aug 24, 2007.

  1. Stock A has a spread of 100.50 - 100.55
    Stock B has a spread of 100.20 - 100.75

    Both stocks do Equal volume.

    Which has a greater likely hood of getting filled?

    1) A limit order to buy 100 shares of Stock A at 100.50
    2) A limit order to buy 100 shares of Stock B at 100.20

    or is more information needed?
  2. First one..duh

    you cant get filled on the bid with a 1/2% spread
  3. First I'd like to say I'm not the brighest crayon in the box.

    However I don't understand if there is equal volume that means that trades are being executed at the same rate. So why would the spread be a factor?
  4. Sanjuro


    Suppose I was exiting my position in both stocks.

    If the spread was small like Stock A, I would just sell on the bid.

    If the spread was big like B, I would put an offer below the ask.

    Makes sense?

  5. More information is needed. If there is an aggressive seller in a stock you'll see market orders hitting your bids regardless of the spread. Obviously, market orders are the only way to move the market.
  6. Sanjuro


    Yeah, if there was an aggressive buyer in a stock, you will never see either bid hit regardless of the spread.

    One would assume the OP meant in normal market conditions.

  7. yes, thanks