Imported from previous forum
[ original email was from Andrew Bowley - andrew.bowley@drkw.com ]
3 Questions on "Market" order types:
(1) The FIX glossaries (eg 4.4 draft 3 p70) contain an order type of "Market Or Better", defined as "Indicates an order to buy or sell a stated amount of a security at the quoted market or better", yet tag 40 does not appear to have a value for this order type. Is this an error or is this order type identified under a different tag?
(2) The above definition suggests to me that the order would not hit prices worse than the current touch bid/offer on an order book, and would remain as a limit order at that price if not fully executed (sometimes called an "At Market" order, as opposed to a "Market" order). Is that correct?
(3) The definition for "Market" order is: "Indicates an order to buy or sell a stated amount of a security at the most advantageous price obtainable after the order is represented in the Trading Crowd." Is this generally understood to mean executing at as many prices on the opposite side of an order book as are necessary until completed.
Hi,
Is a market or better another way of saying “Limit or better” order?
I also am wondering about this question??
3 Questions on “Market” order types:
(1) The FIX glossaries (eg 4.4 draft 3 p70) contain an order type of
“Market Or Better”, defined as “Indicates an order to buy or sell a
stated amount of a security at the quoted market or better”, yet tag 40
does not appear to have a value for this order type. Is this an error or
is this order type identified under a different tag?(2) The above definition suggests to me that the order would not hit
prices worse than the current touch bid/offer on an order book, and
would remain as a limit order at that price if not fully executed
(sometimes called an “At Market” order, as opposed to a “Market” order).
Is that correct?(3) The definition for “Market” order is: “Indicates an order to buy or
sell a stated amount of a security at the most advantageous price
obtainable after the order is represented in the Trading Crowd.” Is
this generally understood to mean executing at as many prices on the
opposite side of an order book as are necessary until completed.
[ original email was from Rikard Hedberg - rikard.hedberg@omxgroup.com ]
Hi,
I would not recommend using that type of order unless it is provided by a marketplace who can explain the usage (I have not found one).
I agree a reasonable meaning could be an unpriced order that is executed at the best current price and then stored with that price as a limit price (“Best to limit” might be a better name for it). On the other hand there is also the “Market with Leftover as Limit” (OrdType = K) which, depending on marketplace rules, applies to a single or many price levels. It is e.g. not uncommon that market orders are protected so they can only trade through a pre-defined set of price levels (e.g. one). Also note that the 4.4 SP1 supports a new order tag (MaxPriceLevels, 1090) that allows the user o define the number of price levels the order should be allowed to trade through.
So - in the interest of standardization, I would not see it as a best practice order type. It seems the intended functionality could be achieved in better ways.
Regards
Rikard
Hi,
Is a market or better another way of saying “Limit or better” order?
I also am wondering about this question??
3 Questions on “Market” order types:
(1) The FIX glossaries (eg 4.4 draft 3 p70) contain an order type of
“Market Or Better”, defined as “Indicates an order to buy or sell a
stated amount of a security at the quoted market or better”, yet tag
40 does not appear to have a value for this order type. Is this an
error or is this order type identified under a different tag?(2) The above definition suggests to me that the order would not hit
prices worse than the current touch bid/offer on an order book,
and would remain as a limit order at that price if not fully
executed (sometimes called an “At Market” order, as opposed to a
“Market” order). Is that correct?(3) The definition for “Market” order is: “Indicates an order to buy
or sell a stated amount of a security at the most advantageous
price obtainable after the order is represented in the Trading
Crowd.” Is this generally understood to mean executing at as many
prices on the opposite side of an order book as are necessary
until completed.