When creating a buy or sell order the user may have three alternatives (if configured by the service provider) for determining the order price by selecting a price setting.
|
SETTING |
BUY ORDER |
SELL ORDER |
|
At Specified |
The order price will be set at the price contained in the Price(c) box. This price defaults to the last price in the market at the time the order is placed, but may be changed. |
The order price will be set at the price contained in the Price(c) box. This price defaults to the last price in the market at the time the order is placed, but may be changed. |
|
At Best |
The order price will be set as equal to the highest buy (bid) price in the market depth at the time the order is created. The order will be placed in the queue. |
The order price will be set as equal to the highest sell (ask) price in the market depth at the time the order is created. The order will be placed in the queue. |
|
At Market |
The order price will be set as equal to the lowest sell (ask) price in the market depth, at the time the order is created. The order will trade immediately. |
The order price will be set as equal to the highest buy (bid) price in the market depth at the time the order is created. The order will trade immediately. |
During market trading hours an 'At Market' order will trade immediately as it will be matched with a corresponding order on the opposite side of the market.
Selecting 'At Market' does NOT mean the order price will continue to be automatically amended as the market price changes. Once an order has been generated the price can only be changed by a manual amendment. Therefore, if an order is generated outside market trading times, it cannot be guaranteed that the order will trade when next the market resumes trading. There is always the possibility that the market depth may be further amended by other traders such that the order is no longer at the market price when trading is resumed.
An 'At Market' order will only trade a volume that is equal to or less than that which is on the opposite side of the market and at the same price level as itself.
For example: if the 'At Market' order has a volume greater than the corresponding order on the opposite side of the market, it will only partially trade. The unfilled portion will remain in the market, and the order price may need to be amended for it to trade.