Matching logic for Market Orders

DTN Exchange® applies matching logic on market orders and bids.

DTN Exchange rules for market orders are similar to those accepted for stock market trading. That is, your order is matched at the most current price recorded at the time the order is confirmed. This may be higher or lower than the seller’s offer price you saw online and for which you placed a market order.

This variance occurs because there is a slight time difference between the price displayed on the page and the price when the order is confirmed. During this interval, the market may remain steady, or it may go up or down. In most cases, the seller’s offer price is tied to the market. That means when the market goes up, the seller’s offer price goes up. Likewise, when the market goes down, the seller’s offer price goes down. DTN Exchange matches your order at the most current price recorded, even if it is different than the price with which you began your order process.

Note: Remember to complete your market order once you begin. This makes sure you receive the current prices.

Matching logic for Bids

Bids are matched into trades depending on how the seller has set up their DTN Exchange.

In a softening market, when a seller’s offer price moves down and reaches the buyer’s bid price, DTN Exchange can automatically match at the bid price.

The second way a bid can be matched is when a seller manually accepts a bid price from a buyer.

Inadequate inventory logic

If the seller doesn’t have adequate inventory listed on DTN Exchange to fill a market order, you can’t place a market order or submit a bid.

Category: Exchange Buyer