Linked Questions

46 votes
2 answers
26k views

How do exchanges match limit orders?

Say a security has been trading at under $20.10, and there are limit orders selling at $20.10 and $20.21. Then Simon issues a limit order to buy at $20.21. According to this explanation, Simon would ...
xyz's user avatar
  • 775
4 votes
1 answer
7k views

Price/Time priority order matching - limit order starvation

Under price/Time priority order matching, market orders get priority over limit orders. How is starvation of limit orders prevented? By starvation, I am referring to the case where limit orders don't ...
AfterWorkGuinness's user avatar
2 votes
2 answers
312 views

How do exchanges handle overflowing market orders

Say that I observe the following market (a simplified limit order book with only limit and market orders): Bid | Price | Ask | 100.75 | 10 | 100.50 | 40 20 | 99.40 | ...
David's user avatar
  • 123
2 votes
2 answers
399 views

Price matching with Limit Orders

I have basic question concerning the stock market. I placed a Limit-Sell Order of 500 shares at $1.45 for Stock X while it was trading below that. Two days later I woke up to all shares being sold for ...
oko125's user avatar
  • 21
2 votes
1 answer
241 views

When an electronic market reopens in the morning how are all the bids handled?

When an electronic market reopens in the morning how exactly are all the bids (including market orders from both sides) handled? A good answer should include a description of the process the exchange ...
hkBst's user avatar
  • 173
1 vote
1 answer
875 views

Can a market order be matched by another market order in stock trading?

I have found similar questions in this forum but those answers didn't specifically clear the fact.
noobforever's user avatar
1 vote
1 answer
952 views

How are market orders matched? [duplicate]

I'm trying to gain some insight into how orders on an exchange are matched to design a proof of concept matching system. Am I correct in assuming market orders are immediately executed against the ...
AfterWorkGuinness's user avatar
1 vote
1 answer
103 views

Bid and ask... no limit orders [duplicate]

So I'm understanding that the bid is the price buyers are willing to pay for a stock, and ask is the price sellers are willing to sell for. But what if there are no limit orders... only market orders....
Ameet Sharma's user avatar
1 vote
2 answers
694 views

Can a buy market order be matched with a sell market order in Forex trading?

Should Market-orders be always matched with Limit-orders with best price on the opposite book? Or is there a case scenario where a Market-order could be matched with another Market-order? At which ...
Diego vDev's user avatar
0 votes
0 answers
85 views

Market sell order executed at a higher price than existing limit order in a very illiquid market for an illiquid stock

First off, please bear in mind that this is a very rare scenario for a very illiquid stock in an illiquid market. Let's say the lowest ask price for the stock is 10.00 atm and there's no bid order ...
LAZJ's user avatar
  • 1