Who gets filled first in the book?

B

BuyLowSellHigh

A newbie question:

How does the exchange determine who's limit order gets filled first when the price finally reaches the target? Do they keep track of order placement time and execute in first-in first-out manner? Often the price target is a resistance or support so I can see the book is often a little more "crowded" at the target than other levels. Wondering if I should try to place the order as early as possible to increase my changes of getting filled. Or should I just try to shoot for a tick worse than the ideal level and assure getting filled?

TIA
 
there is a fill algorithm that determines the fill.....you should call the exchange depending on the product to see how this works. In some products it is simple (FIFO) first in first out but in others like eurodollars they use a hybrid system that takes into account numerous factors.

What product are you trading?

The paper (http://www.fma.org/Prague/MatchingAlgorithmsPaper.pdf) is a pretty good start to understanding fill algorithms.
 
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