Originally posted by Don Bright
This is not exactly how the orders are treated. Time priority can be "skewed." You are of course correct about the order-type priority.
1. Limit orders can be filled by the clerk who has the computer showing the orders. When we "have" to buy something, we simply place a limit order above the offer, and the clerk immediately fills us a the best price, giving price improvement.
2. Market orders can only be filled by the Specialist...so the orders can be held and "batched" every so often. That is why we use limit orders, because the time of the fill is the most important thing...since you going to get price improvement anyway.
Don
