I'm trying to determine how price improvements work when executing market orders/buy orders at the ask. Typically I'll receive at least .0001 of price improvement, sometimes I'll receive .005. Sometimes on the tape I see several .005 price improvement fills and I'll immediately place an order and only get .0001 of price improvement. Is there any rhyme or reason to how this is determined?
Price improvements
- Thread starter Ta909
- Start date
Yes, the changes in bid/ask as you are completing your order.
What type of trading instruments are you referring here?
Robert Morse
Sponsor
You're getting price improvement, not because someone wants to give you a gift of a lower price but to internalize your order and step in front of a public order at the full price. They will do what they have to to make the sale.
%%
Can get better than than ;
+ when buying on the ask in a correcting\ uptrend\ in a fast falling market.
And doesn't happen very often; but really, someone can sell you something @ any price improvement they want to. [Some brokers/market makers bought QQQ @ $ 50 or whatever the first price was]……………………………………………………………………………………………………………………………...