What is the book of limit orders?
Limit order book is a term used in stock market trading to refer to the list of waiting limit orders compiled by a specialist. Usually a book on limit orders is used by brokers to monitor orders to buy or sell stocks within a specific prices threshold called limit orders. OMET orders differ from market orders because they require shares to be purchased only at a certain price, while market orders are agreements on the purchase of shares at the current market price.
Limiting orders may benefit the buyer by setting the limit how much they pay for the stock. Shares can often increase rapidly and their original prices evolve several times until brokerage is carried out by a standard market order. Entering the limit order can help protect the buyer from paying the market price if the shares of the skackets that can prevent the buyer from experiencing losses if the shares fall immediately.
Orders Book With InterestThey use them in daily trading. It is also called “Level 2 market data,“ Book of orders contains information about offers and information about the applicant contained in stock orders from brokers.
One disadvantage to limit the order of order is the possibility that the purchase of shares will never be made. In a way, there is a limitation of forecast commands that shares will eventually increase or fall to the specified price. If the stock never falls on the threshold value of the purchase at the limit order, the purchase will never be made. Likewise, if the stock never increases to the sales threshold that the shareholder marks, the shares will never be sold. Another problem with the limit shares is increased expenses, because companies for shares tend to charge more money for the limit order serzlozvyky than regular market orders.
The market specialist is a person on the stock exchange responsible for negotiating sales between buyingand sellers. The specialist is expected to stability on the market to make limit orders when they meet their prices' threshold, but to prefer that it is the best offer for shares using information in the Limit Orders book. The specialist is also responsible for keeping updated information about the price and offer of buyers and retailers on the stock market.