Batch Trading
Definition of 'Batch Trading'An accumulation of orders that are executed simultaneously. Batch trading saves time and effort by treating multiple buy and sell orders as one large transaction. At least in the United States, however, batch trading is only allowed at the market open and pertains solely to orders placed during non-market hours. |
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Investopedia explains 'Batch Trading'Generally speaking, batch trades are confined to high-volume stocks that are not overly price-sensitive. Furthermore, to qualify as a batch trade, the security in question must be trading at the price specified in the order (if it was a limit/stop order). Batch trading is restricted to the market open in the U.S. so as to ensure that the stock's price is fair and just, i.e. not fluctuating wildly from one batch trade to the next. |
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