oussama94
05-28-2017, 18:54
The equity market typically operates under a “next best order” system,
under which you may not get executed at the price you wish, but rather at
the next best price available. For example, let’s say Microsoft is trading at
$52.50. If you enter a buy order at this price, by the time it reaches the specialist
on the exchange floor the price may have risen to $53.25. In this case,
you will not get executed at $52.50; you will get executed at $53.25, which
is essentially a loss of three-quarters of a point. The price transparency
provided by some of the better market makers ensures that traders always
receive a fair price.
under which you may not get executed at the price you wish, but rather at
the next best price available. For example, let’s say Microsoft is trading at
$52.50. If you enter a buy order at this price, by the time it reaches the specialist
on the exchange floor the price may have risen to $53.25. In this case,
you will not get executed at $52.50; you will get executed at $53.25, which
is essentially a loss of three-quarters of a point. The price transparency
provided by some of the better market makers ensures that traders always
receive a fair price.