price improvement

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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References in periodicals archive ?
OpenMarkets, Shaw and Partners, and Morgans join Chi-X Australia s 34 other market participants as the Chi-X platform continues to provide investors with price improvement opportunities, low trading fees and efficient execution.
Retail Price Improvement (RPI) Program Designed To Maximize Price Improvement Opportunities for Retail Investors
com)-- If the price improvement becomes readily available before traders limit order execute, LGCEX FOREX Desk Execution system will automatically consider executed trades for the new price improvement; this means that traders would benefit from possible low commission rates that the firm offers.
Price improvement is defined as the difference between the best bid or offer on the security's primary exchange and the Chi-East execution price
uk/) firm, have collectively saved over GBP1,000,000 in recent months thanks to the company's innovative Price Improvement technology as clients may now receive better order price when they place a trade.
However, the large buildup of stocks will limit price improvement.
Specific areas of price improvement include property catastrophe reinsurance, with price increases of 10% to 15% in the United States, and April renewals in Japan averaging 20% to 35%; other property insurance and reinsurance, with increases of 25% or more; excess casualty insurance, up 5% to 8%; casualty treaty insurance, up 20% or more; and casualty facultative insurance, up 25% or more.
The SEC, however, dropped the most controversial proposal, a plan to require Nasdaq dealers to offer price improvement to customer orders, a practice similar to what floor specialists offer investors on the New York Stock Exchange.
Retail investor trades to benefit from price improvement on the NYSE and NYSE MKT
Since the launch, our strategy has been to provide investors with better prices and price improvement opportunities.
Plans Retail Price Improvement (RPI) Program for BATS BYX Exchange, Pending Regulatory Approval