What Is Continuous Trading?

Continuous trading is a method for transacting security orders and involves the immediate🍷 execution of orders upon receipt by market makers and specialists.

Understanding Continuous Trading

Continuous trading forms the basis for all types of trades across secondary 澳洲幸运5官方开奖结果体彩网:exchanges in the United States. It can be compared to 澳洲幸运5官方开奖结果体彩网:batch trading, which is the opposite of continuous trading and occurs only at the market op๊en.

Continuous trading occurs continuously throughout the trading day with immediate execution by 澳洲幸运5官方开奖结果体彩网:market makers. Batch trading, on the other hand, involves executing a batch order of trades that have been delayed by unexecuted orders lined up and awaiting execution. Market makers can view the supply and demand from batch orders prior to the market’s open. Thus, a batch order of trades is executed each day at t൲he market’s open with or🍬ders that have been placed for market maker processing during the market’s off hours.

Continuous trading is facilitated by the market making process that forms the basis for secondary market exchanges. Market makers execute trades continuously throu♛ghout the trading day by matc𒈔hing buyers and sellers. Market makers execute trades that have been submitted for order at a prevailing market price.

The market making process requires a market maker to buy securities from a seller and sell securities to a buyer, matching interested buyers and sellers in the open market. This process is known as the bid-ask process and creates a profit for the market ma💜ker. The market maker makes the difference in value between the bid and ask price, also known as the spread.

Special Considerations

Investors can submit various types of trade orders. 澳洲幸运5官方开奖结果体彩网:Market orders are submitted for continuous trading execution instantly since the investor is willing to🦂 agree to the market price.

Other types of orders are considered to be 澳洲幸运5官方开奖结果体彩网:conditional orders, which are only to be executed after one or more specified criteria are reached. An investor can set a variety of different types of conditional orders. These o🐭rders have a specified price that is desired by the investor for executiꩲon in the open market.

Therefore, for these orders to be accepted in the market for continuous trading, the price for execution must reach the prevailing market price to be considered by a market m💝aker. Thus, while the market is offering continuous trading, a conditional order from an investor will only be executed in the continuous trading market when the price is available.

In som🍃e situations, an investor may also specify whether they wish for their order to be executed in full or partially at their desired price. Certain orders may only exe༒cute partially due to the availability in continuous trading, while other orders may require that the entire order be filled.