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>In the example above, if they had not filled your order at the price improved price, it would have either filled at the higher price, or rested at the higher p
by jsprogrammer 10y ago
>In the example above, if they had not filled your order at the price improved price, it would have either filled at the higher price, or rested at the higher price.
Or, you know, improve beyond the $0.001/sh the wholesaler paid.
- kasey_junk 10y agoNo, it wouldn't have. That's the point of why they improved you. By that point there was no one else available to do it.
- jsprogrammer 10y agoSo, you wait around for an order at your limit or better. There is nothing that says your limit order must fill, even if no on is available.
- kasey_junk 10y agoIt won't be better, that's not how it works. At the point that they filled you at 10.299, the market is set at 10.30. 1 of 2 things can happen. Either there is enough volume to fill you at 10.30 that your order is fully filled at 10.30 (worse than the wholesaler gave you) or there isn't and some of your order fills at 10.30 (worse than the wholesaler gave you) and you have now set the new market level and rest your order. Once your order rests, it will not be improved and will either fill at 10.30 (worse than the wholesaler gave you) or it will be cancelled (you didn't get what you wanted). Most people placing a limit order like that would prefer the outcome that the internalizer provides, if you don't, great use a broker that allows you to route direct. But its certainly not front-running because the internalizer acted directly in your stated interests, not against them.