price improvement

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Price Improvement

A situation in which a buyer pays less than the previous ask price for a security or in which a seller is paid more than the previous bid price. Price improvement usually occurs when a good broker is able to find a better price than the market price currently quoted.

price improvement

The execution of an order at a price better than what is currently quoted publicly.

Price improvement.

Price improvement occurs when you pay less or receive more on a securities transaction than the bid and ask prices being currently quoted.

In other words, the price you pay to buy is lower than the ask price or the price you collect for selling is higher than the bid price.

Price improvement may occur for a variety of reasons, from a change in market price to the diligence of your broker in seeking out the best price. For example, your broker may fill your order from the firm's inventory or net it against a sell order from another client of the firm. Or the order might be sent to a particular market for execution if a better price is available.

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Prior to the new price improvements on limit orders, most traders experienced usual trading inconvenience that most of their limit entry orders always fill at the limit price even if the market price disparity approvingly through it.
With its integrated software, capacity by the day, and dramatic price improvements, the IBM eServer iSeries now offers customers all the tools they need to respond to the world of on-demand business.
Even when price improvements function as a type of price discrimination and dealers choose improvements (without collusion), profits may not increase.