Question: A continuous auction starts with an empty order book. The market opens and the following sequence of orders arrives: 9:30am, Trader ABC, Buy 1, limit

A continuous auction starts with an empty order book. The market opens and the following sequence of orders arrives:

9:30am, Trader ABC, Buy 1, limit 24

9:31am, Trader DEF, Sell 2, limit 25

9:40am, Trader GHI, Buy 2, limit 20

9:43am, Trader JKL, Buy 5, limit 20

9:52am, Trader MNO, Sell 3, limit 19

10:01am, Trader PQR, Sell 2, limit 18

If the market applies price and size priority, which buy orders would trade?

A MNOs order trades against ABCs order and partially against JKLs order

B The order by ABC is fully executed and the order by DEF is partially executed

C The orders by DEF and GHI are fully executed

D ABC trades with MNO and then GHI trades with MNO

E PQRs order trades against ABCs order and partially against GHIs order

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!