Description of order matching/order flow

[phase21]

Can anyone point me to a descrption of how orders are matched by brokers/exchange.

I've searched T2W forums,K Lab/etc, but there doesn't seem to be a thread/article that describes what happens to my order (buy long), once I hit the submit button from my platform.

Search terms used included: order flow/matching/execution


p21

 

[Directional]

depends on the market, but the two main exchange order queu matching algorithms are FiFo and ProRata. Search the TraderPedia for these two terms and you should find some more info.

 

[CityTrader]

Can anyone point me to a descrption of how orders are matched by brokers/exchange.

I've searched T2W forums,K Lab/etc, but there doesn't seem to be a thread/article that describes what happens to my order (buy long), once I hit the submit button from my platform.

Search terms used included: order flow/matching/execution


p21

Brokers match orders in house either by their traders posting on the elecronic wall boards what they ( as a house) are bidding/offering for, or more likely through the use of one of the electronic information disemination systems such as IOI's.( Indications of Interest). No, you as a private individual can NOT get access to these!

SETS outside of auctions uses FIFO.

 

[phase21]

Thanks guys,

I had a look at the definitions in Tradeapaedia, but still doesn't quite answer my question.

If I Buy 1 @ 500.0 (futures contract) , who supplys the contract, and is it a Sell order, or is it a Buy order (to exit their exisiting Sell position)?

I guess what I'm looking for is a process-flow diagram that shows how an order is processed in the "system", to enter a position, and then to close it out, who plays what part at each stage, etc.