Part II specifies some basic vocabulary; illustrates how, in a multivenue market, the arrival of a market order, the arrival of a limit order
, and the cancellation of an already standing limit order
each results in a transaction and/or changes the available quotes; and describes how information concerning the quotes and transactions on these venues is collected and disseminated.
It can be handy if you like a company but think its stock is a little too rich, as you can place a limit order
to buy it if it falls to a lower price.
For instance, a purchase limit order
for Rs 50 will work only if there is a seller at Rs 50 or less.
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.
The limit order
is an order to buy or sell at a designated price.
My picks: limit order
to short AUDUSD in halves at .
We show that trading volumes and other measures of market activity, like the depth of the limit order
book, have increased significantly since 2001.
Types of Limit order Limit order Limit order
orders Market order Market order Market order Conditional Conditional limit order limit order
Best limit Best limit order
order Closing/ Continuous Periodic call Periodic call settlement auction for auction auction prices closing price Weighted average (for the last one minute before market closing) for settlement price Margin Fixed amount Fixed percent Fixed percent requirement (per contract) (per contract) (per contract) Initial margin to be required for all futures and options products Initial No initial Initial margin Temporary margin margin required exemption to be requirement required given to trading accounts for KTB futures, options on KTB futures, interest rate futures, currency futures & options, and gold futures
In each case, the TSX ex-day behavior is consistent with the lack of a limit order
Panchapagesan, 2005, "The information content of the limit order
book: evidence from NYSE specialist trading decisions", Journal of Financial Markets, 8:25-67
Aitken, Almeida, Harris, and McInish examine the orders of active and passive institutional investors across five (bid) steps of the limit order
book; they also test recent theories of order aggressiveness in limit order
And the resulting market - one that's fluid, fragmented and more fully automated - is crying out for a central limit order
book, according to "ECN Proliferation: All Roads Lead to a Central Limit Order
Book," a research note from TowerGroup, a Massachusetts-based consultancy.