4 ms·
Alice isn't screwed in the second case. She just gets lucky in the first case.
by geetee 15y ago
Alice isn't screwed in the second case. She just gets lucky in the first case.
- tptacek 15y agoAlice is holding a security that is decreasing in value, and her book order isn't going to clear.
- Peaker 15y agoAssuming no HFTs, maybe Alice could set min_price=9.9$, and still sell for $10.05 in the better scenario? It seems that HFT's kill alice's sell spread option, forcing her to sell at min_price?
- tptacek 15y agoHuh? If Alice places a limit sell at $9.90, Bob's limit buy at $10.05 order will execute at $9.90. The limit price of the standing order is the one that prices the trade.
- Peaker 15y agoOh, thanks for correcting my misunderstanding. So in general, sell "min_price" really just means sell "price"? Or are there circumstances that it would sell above that price?
- cynix 15y agoAs explained above, if Bob's $10.05 buy order was in the order book first, then Alice's $9.90 sell order would trade with Bob's buy order at $10.05.