Questions tagged [order-execution]
For questions about order execution on securities markets
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NBBO execution at public exchange
There are about 16 stock exchanges in the U.S market. According to Reg NMS, broker-dealers have to guarantee at least NBBO price to its customer. My question is if the best ask is coming from say IEX ...
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Is it possible to fail to receive my shares even though the buy order was successfully executed?
Suppose I placed a buy order for a stock, and my stock brokerage firm told me that the order was executed. Is it ever possible that I fail to receive the shares even though the order was successfully ...
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How is a stock's closing price determined if there are multiple possible prices during the closing auction?
It is my understanding that during the closing auction, the selected closing price is the price at which the most number of shares would trade. But what happens if there is more than one such price? ...
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What happens if stop market orders are activated and there is zero volume in the book?
I am developing an order matching system and I have a few scenarios that I would like to confirm my understanding of.
From my understanding, a stop order will be activated when the last traded price ...
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Triggering a conditional sell order on the bid price
I recently set up a trailing stop sell order for an illiquid security that was triggered by the bid price going above a certain threshold. My rationale to trigger on the bid price was an attempt to ...
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Broker executed market order far outside spread
I placed a buy market order during trade hours. The broker executed the order at a horrible price far outside the spread. The security's spread was wide, but I expected the order to be executed at ...
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Do all limit-on-close (LOC) and market-on-close (MOC) orders get sent to the stock exchange?
In the US stock market, when I place a limit-on-close (LOC) order or a market-on-close (MOC) order, is the order guaranteed to be executed on the stock exchange? Or are stock brokerage firms allowed ...
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Do any crypto exchanges still use traditional market making? [closed]
Do crypto trading platforms or DEXs still use traditional market making schemes? Or are there no more traditional market makers out there, only automated market makers that utilize smart contracts?
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What makes a trade not eligible to update last traded price of a stock?
Hi I have below sample data for a stock.
Last column of data tells whether corresponding trade is eligible to update last price of stock or not. If 'Y' then it should update, else trade should be ...
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Can I place limit orders (like limit, stoplimit, trailstop..) in bonds (treasury bonds, municipal and other types of bonds)?
Can I place sell limit orders (like limit, stoplimit, trailstop..) in US bonds (treasury bonds, municipal and other types of bonds)? or it is only market orders?
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What happens if the volume of two orders does not match?
I see the stock market as a list of orders which have a type (buy-limit, sell-limit, sell stop-loss, ...) a volume, and a price. Some order types have more parameters, but for simplicity I'd like to ...
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How is limit order handled right at market opening?
Consider the situation I want to buy shares of a company. Further, consider that the share price was at x when the market closed at the end of the day. Now during the market closure, I place a limit ...
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Is there any evidence that zero commission stock brokers are cheaper than those that charge commissions?
Trading costs can be divided into explicit costs and implicit costs. The explicit cost is the commission charged by the stock broker. The implicit costs are the price impact of the trade, and the ...
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What kind of order review does TD Ameritrade do on a simple and small buy limit order for a stock traded on the NASDAQ?
I was surprised to see that one of my simple and rather small buy limit orders for a stock traded on the NASDAQ got placed under review for 23 seconds before it got executed (small ~= 30kUSD, which ...
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Does the difference between a marketable limit order's price and the bid-ask price influence the priority of the order?
A stock is $10 bid and $11 offered. Alice places a marketable buy limit order with a limit price of $12 per share. At exactly the same time, Bob places a marketable buy limit order with a limit price ...
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Choosing the proper order type to preserve profits on crypto exchanges
I bought ETH at approx. 1700. It went to 1800. I wanted to preserve my gains and created a LIMIT order. My thoughts that if the price "came back the other way", then it would hit the LIMIT ...
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How does Limit order book works in the following hypothetical scenarios? [duplicate]
I’m a beginner to trading and reading some stuff about Limit & Market orders. I’ve thought up some scenarios and I would like to confirm on how the underlying order book mechanism deals with them.
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Is zero commission stock trading dependent on payment for order flow?
All zero commission stock brokerage firms I have looked at are able to offer zero commissions because of payment for order flow (PFOF). Is PFOF a necessary component of zero commission stock trading, ...
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Why don't traders place limit orders at all prices to be first in line when the price moves?
In markets with price-time priority, why don't traders enter limit orders at all prices, so that they could be first in line when the price moves? For example, if the current best bid is $10 and the ...
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Does the Regulation NMS Order Protection Rule apply to odd lots?
The order protection rule prohibits trade-throughs of NMS stocks during regular trading hours, but does the prohibition apply to odd lots too? If I decide to bid $408,500 for 1 share of Berkshire ...
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Why does my stockbroker allow trading at the close but not at the open?
I have an stock brokerage account at TD Ameritrade, and I noticed that it allows market-on-close (MOC) and limit-on-close (LOC) orders, but not market-on-open (MOO) and limit-on-open (LOO) orders. Is ...
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Should I buy or sell stocks during the opening and closing auctions only?
From what I see, there are a number of advantages of buying or selling stocks during the opening and closing auctions:
Huge liquidity. The opening and closing auctions have the largest amount of ...
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US stock market: How do odd lot orders get filled if they are not advertised to the public?
I recently asked Why didn't my buy limit order become the highest bid? when my odd lot (1 share) buy limit order did not appear in the public list of bids. If odd lot buy orders do not appear in ...
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What is the relevance of price-time priority when each stock trades on many stock exchanges?
The majority of stock exchanges seem to arrange limit orders by price-time priority. This makes sense when each stock trades on only one stock exchange. If my limit order is the first in line on that ...
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Do customer orders have higher priority than market makers' orders in the US OTC stock market?
In the US OTC stock market, do customer orders have higher priority than market makers' orders? For example, a market maker is bidding on stock S at $10 for 100 shares. Assume that this is the highest ...
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Should I consider the bid-ask spread as part of the transaction cost of a market order?
When I place a market order or marketable limit order that successfully executes, should I consider the bid-ask spread as part of the transaction cost of my order? The bid-ask spread is appears to be ...
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What type of orders fit my strategy in a way that two triggers might be needed?
As a newbie on trading cryptocurrencies, I found Stop-Limit Order does no longer fit my strategy in a situation like this:
Ater a huge price pump, the market price has stabilized at around $450 now. I ...
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Can you set up a contingent order that only sells when the stock price falls to a value above the current price?
For example, say the current price is $20 a share and I have sell order for when it hits $25 while decreasing in value. So the price will have to initially pass $25 without selling, but will sell if ...
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Whose limit gets prioritized?
Imagine a stock with a high spread with only 1 buyer and 1 seller. If the stock is $1, and the seller ask is $1.10, and I am the buyer. And assume I do not know the book for the stock.
If put in a ...
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purpose of making an MOC order
I'm just introducing myself to the different order types in ordering stocks, and I don't understand the purpose of an MOC order. In what scenario would making this order be useful or propitious?
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Is front-running allowed under PFOF?
I'm reading this introduction to PFOF.
https://centerpointsecurities.com/payment-for-order-flow-guide/
It claims that those buying flow are allowed to front-run that flow. For example, if a customer ...
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Why are liquidity suppliers willing to provide "price improvements" when executing orders?
US stock brokers often boast of "price improvement" when speaking of their order execution quality. e.g. "95% of executed market orders received prices better than the National Best Bid ...
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What are "Other Orders" in order routing reports?
I was reading Robinhood's SEC Rule 606(a) disclosure report (Robinhood Securities - Held NMS Stocks and Options Order Routing Public Report) for Q1 2020. For orders on S&P 500 stocks in January ...
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What causes stock orders to execute outside the NBBO?
I was reading Stocks Order Routing and Execution Quality on Robinhood's help pages, which says:
For example, in the third quarter of 2020, 97.53% of our customers' market orders for S&P 500 stock ...
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What is the difference between payment for order flow and ECN rebates?
In both payment for order flow and ECN rebates, one gets paid for providing liquidity. What is the difference between payment for order flow and ECN rebates? Are ECN rebates a type of payment for ...
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My share sell price is lower than the price people are buying yet no sale?
I’m trying to sell some shares at a sell price of 0.5. I can see from the buy/sell history over the past few days that shares are being purchased for 0.6 and others sold for 0.4.
My question is why ...
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What are the risks of placing limit orders on illiquid securities without knowing the Level 2 quotes?
I only have access to Level 1 quotes (best bid and ask) for some illiquid securities. Suppose I place a buy limit order on such a security based only on the Level 1 quotes. What are the risks I could ...
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Can brokers execute my OTC stock orders at inferior prices by "trading through"?
I am aware that FINRA-registered broker-dealers have to follow FINRA Rule 5310 (Best Execution and Interpositioning). But are OTC stocks (OTCQX, OTCQB, OTC Pink) subject to the Order Protection Rule ...
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How can I compare the order execution quality between two brokers if they don't follow the Financial Information Forum (FIF)'s template?
As explained in https://www.stockbrokers.com/guides/order-execution (mirror), the information present in SEC Rule 606 reports don't allow to compare the order execution quality between brokers. As a ...
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Did the recent trend among stock brokers to switch to commission-free stock trades result in a degradation in trade execution quality?
I read on https://www.cnbc.com/2020/08/13/how-robinhood-makes-money-on-customer-trades-despite-making-it-free.html (mirror):
Before, when brokers charged commissions for each trade, they often were ...
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Quality of price when trading less than 100 shares
I am thinking about diversifying my portfolio by adding 10 new positions. Due to limited funds, I am planning on buying less than 100 shares each time. It is my understanding that since I am buying ...
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After hours matching
I put in an after hours sell order, well below the standard hours and after hours ask, on a liquid Dow futures security. The transaction did not complete. I looked in the ledger detail and found that ...
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Outstanding order in the Selling process in Degiro
If I sell my share with Order duration GTC (Good till cancelled), the order will became an Outstanding order. When it will be active to sell? Do I need to make any action to continue the selling ...
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Why ever use a market order?
I've read all the explanations online. Use market to fill quick, regardless of price. But... How that is that different from a sell limit of 0 or a buy limit of infinity? (Right, in practice things ...
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Why am I unable to buy at the ask price?
I was trying to buy ProShares Short Dow30 ETF (NYSE Arca: DOG). I put in a limit order at the ask price not the bid price since I want the order to execute all at once. The ask price is a penny more ...
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