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Trading Whose Trade Is Executed First

Discussion in 'Shares' started by Chris C, 31st Aug, 2012.

  1. Chris C

    Chris C Well-Known Member

    Joined:
    2nd Apr, 2008
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    Location:
    Brisbane, QLD
    Ok so I was wondering today, often people place conditional orders to buy or sell shares at a certain price, but a number of people might be willing to sell or buy at the same price.

    Let's say there are 5 people willing to sell 10,000 shares each at $2.00, then someone comes onto the market and puts in an order to buy 25,000 shares at $2.00...

    Whose sell orders get fulfilled first? Is it the person who had their sell order in first? Do all of the orders get 5,000 shares sold and have to wait for another buyer to buy the other 25,000 shares? Does the broker you are using and its trading speed matter, ie etrade vs commsec vs CMC?
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    9th Jun, 2005
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    Location:
    Sydney, Australia
    I don't know the answer, but I was always under the impression that orders were fulfilled in a FIFO manner and trading speed did matter somewhat.

    Maybe that's just marketing from the brokers though.