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Related to Precedence: Precedence Effect
The established system of priorities of trades in an exchange. For example, the highest bid and lowest offer have highest precedence; the first bid or first offer at a price has highest priority, and large orders have priority over smaller orders.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
On an exchange, the succession in which floor traders must execute orders. Invariably, the orders with the highest bid or the lowest ask are executed first. If two orders have an identical price, the one entered first has precedence. The specific rules of precedence are set by each exchange individually.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
The sequence in which orders are executed on an exchange floor. For example, the order with the lowest ask or highest bid has precedence over other orders. With orders at an identical price, the one entered earliest has precedence. The precedence of orders is established by the rules of each exchange.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.