Top of the book Rule

C

cigarno

If you place an order to sell 100 shares of company x at market price and the top two orders to buy for company x at the NYSE::

(1)- buy 60 shares at 20$

(2)- buy 40 shares at 18$

while top of the book orders to buy at NASDAQ:

(1)- buy 40 share at 10$

How will I be filled?
 
60 at $20 and 40 at $18.

I assume that it was just an example. Otherwise, it is a super low traded stock. It also depends on your broker.
 
It is just an example.......I am told that ONLY top of the book is protected and once that is filled you will go to the top of the book in another market even if the second price in the first market is better for you.so you will be filled 60 at 20$ and then 40 at 10$?!
 
I thought it was the other way around.

The top of the book is protected, but once a order is routed, it will "walk the book" until filled even if shares are availble elsewhere at a better price.

This shows up as untradeable price spikes on the tape.
 
Now I see what you are asking. Yes only top of the book is protected, but you should interpret it differently. Market center will not execute your order at the bad price, if a better top of the book price is available on the other exchange. By not mean a market center will route your order to the bad top of the book price instead of executing it.
 
NASDAQ:
10.01 x 500
10.00 x 100

NYSE:
10.02 x 500
10.00 x 100

You send buy at 10.02 for 700 shares to NYSE. Only 10.00 x 100 @ Nasdaq is protected, so you will get 2 * 100 @ 10.00 and 500 at 10.02
 
much obliged.........
NASDAQ:
10.01 x 500
10.00 x 100

NYSE:
10.02 x 500
10.00 x 100
you send NYSE a MARKET order for 600. how will you be filled?
 
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