Example: Symbol: XYZ Bid $7.44 Ask $7.45
Client A places a limit order to buy 1000 shares of XYZ at the ask price of $7.45 per share;
How a Marketable Limit Order is Handled:
- The SAS system will first check the SAS inventory account to see if there is a long position in XYZ
- if the SAS is long 1000 shares or more, the order will be filled from the SAS inventory account at the ask price of $7.45;
- if the SAS inventory account has 1000 shares [or none]; it will fill the Client A’s order with whatever the SAS inventory account has, and if it can’t completely fill the order, SAS will check;
- if there are other clients that have a sell order at the ask price of $7.45, then SAS will fill both orders up to the available shares; and
- if Client A’s order still remains unfilled, the remainder of the order; may be filled principal making the SAS inventory account short or;
- SAS can trade XYZ risk-less principal which means SAS will buy XYZ shares in it’s inventory account and then sell them to Client A in order to fill the rest of its order.
All orders would be executed simultaneously.
Please note if the stock trades above your buy limit price you may only receive a partial fill or no fill.