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TIL! Much thanks. Are you sure this (buy at best price in my favor) is how it is implemented commonly (e.g. the limit order is not just rejected for being an in
by bryanbuckley 9y ago
TIL! Much thanks. Are you sure this (buy at best price in my favor) is how it is implemented commonly (e.g. the limit order is not just rejected for being an invalid liquidity maker order?)? I guess it is the Fill-or-Kill that is key; I suppose you can add an additional factor to that limit order to give yourself a range of acceptable prices (obviously you could program it, but is it a common order type on something like E-Trade?)?
- pikchurn 9y ago"In your favor" is how it is required to be implemented by law. You get the absolute best price on the books at the time it hits the exchange. Of course that doesn't stop low-latency firms exploiting information differentials to get their bids in before your order makes it to the exchange, a process called front-running. It would be illegal for your own brokerage to frontrun you, but pretty much all discount brokerages sell information to third parties, which enables those third parties to front-run. Ever wonder why your Robinhood trades are free?