Questions tagged [order-execution]

Order execution is the process of accepting and completing a buy or sell order in the market on behalf of a client. Order execution may be carried out manually or electronically, subject to the limits or conditions placed on the order by the account holder.

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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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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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0answers
52 views

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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1answer
238 views

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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3answers
227 views

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 ...
2
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1answer
60 views

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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1answer
33 views

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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1answer
70 views

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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1answer
32 views

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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0answers
67 views

Can brokers fill my OTC stock orders by “trading through” and executing at inferior prices?

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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2answers
125 views

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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2answers
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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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1answer
50 views

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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0answers
39 views

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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1answer
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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 ...