During continuous trading, where is a quote matched when it meets another quote?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $9.99Unlock all

Study for the SIX Swiss Exam. Gain confidence with flashcards and multiple choice questions, each with detailed explanations. Prepare for success!

Multiple Choice

During continuous trading, where is a quote matched when it meets another quote?

Explanation:
In continuous trading, incoming orders are matched against quotes that are already resting in the order book. When a new quote crosses the opposite side, the trade happens at the price of the resting quote that’s already in the order book. This preserves price-time priority and ensures you take liquidity at the best available opposing price. So you’ll execute at the price of the existing quote rather than at your own limit price or a reference price.

In continuous trading, incoming orders are matched against quotes that are already resting in the order book. When a new quote crosses the opposite side, the trade happens at the price of the resting quote that’s already in the order book. This preserves price-time priority and ensures you take liquidity at the best available opposing price. So you’ll execute at the price of the existing quote rather than at your own limit price or a reference price.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy