2 ms·
If you have direct market access you can match particular orders in the order book, even if they are out of the money. Your friend would fill your $0.01 order a
by andr 16y ago
If you have direct market access you can match particular orders in the order book, even if they are out of the money. Your friend would fill your $0.01 order at $0.01 and move the last trade price.
- yummyfajitas 16y agoThis is not technically possible for most matching engines. There is simply no "fill order X bypassing price/time queue" message. In fact, NYSE doesn't even tell you that order X exists and simply aggregates all orders into "Z shares available at price Y". Also, except in the case of certain rare events which cause high latency (e.g., yesterday), it is also illegal to play games like this. For instance, if the bid is 99 on BATS and only 50 on ARCA, and I want to sell, I can't sell on ARCA. (I'm grossly oversimplifying, of course, but my simplifications don't exclude the case of selling at $0.01 to fool the markets.)
- fr0sty 16y agoReg NMS does not allow a trade to happen outside the national Best Bid/Offer. If the market is 99.99-100.00 you cannot trade even at 99.98