FoundationMultiple choice
Two limit orders rest on the bid at the same price. What decides which fills first on most equity exchanges?
- AWhichever arrived earlier
- BWhichever is larger
- CWhichever came from a registered market maker
- DThey are filled proportionally
The worked solution is in Premium
The answer, the full working and the one idea to take away – for this and all 1,322 questions in the bank. Answer it in practice and your working is marked, with a known mistake named when you make one.
Learn the method
Market structure: the book, the order types and who pays whom
Reported in interviews at
More market making questions
- Which order type executes whatever quantity is available immediately at your…Foundation
- You join the best bid behind 1,200 shares already queued at that price.Foundation
- You post on both sides of a $99.98 at $100.02 market on a venue paying a $0.002…Applied
- The market is $99.98 at $100.02 and you lift the offer.Applied
- The best bid is 100.00 for 900 shares and the best offer is 100.10 for 100 shares.Applied
- You buy 1,000 shares passively at a bid of $50.00, earning a maker rebate of…Applied