Which sequence are we guaranteed?

Discussion in 'Order Execution' started by janus007, Mar 4, 2014.

  1. janus007

    janus007

    I was wondering what sequence an offer would be filled with.

    Scenario:
    • One bidder with price 1 and size 10, timestamp 2
    • One bidder with price 1.1 and size 10, timestamp 3
    • One bidder with price 1.2 and size 4, timestamp 1
    • One bidder with price 1.2 and size 6, timestamp 4

    And:
    • One offer with price 1.1 and size 15, timestamp 5

    (Time stamp 1 to 5 is indicating the time order from old to new)

    Will the seller be filled with the 10fills with timestamp 3, 4fills with timestamp 1 and 1fill with timestamp 4
    or
    will the seller be filled with 4fills with timestamp 1, 10fills with timestamp 3 and 1fill with timestamp 4

    or maybe another one?

    Kind regards
    Janus
     
  2. baglunch

    baglunch

    This answer would change depending on the market/exchange, order type and if there are other offers coming in at the same time.

    In a price-time based exchange/market (most are) if these are regular limit orders you would get filled 4@1.2, then 6@1.2, and finally 5@1.1.

    PSX exchange used to be price-size, in that case you would have been filled 6@1.2, 4@1.2, and 5@1.1. This is no longer the case.
     
  3. janus007

    janus007

    Thank you.

    You gave me some hints and words that was useful in combination with your knowledge to search for further details.