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Buy
Buy @Mkt
$95 Sell
$100
You
The University of Western Australia
Market orders
Buy Sell
Buy @Mkt $110
$95 X5 Sell X4
X3 $100
X2
You
The University of Western Australia
Market orders
Buy Sell
Buy @Mkt $110
$95 X5 Sell X4
X3 $100
X2
You
The University of Western Australia
Stop Orders
E.g. Market sell order of BHP sales with stop price of $9.00. If
price falls to $9.00 or below, the broker will sell the shares at the best
price then available on the market.
Trade Price
Also known as stop loss orders Stop Ask Price = $9
Day order
Good till canceled order
2004,
Google IPO,
Sold 19.6 m
shares @$85
Next week
• Market structure
– Types of markets – quote-driven, order-driven, hybrid
– Electronic vs open outcry
– How does trading occur in Australia vs the U.S.?