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.

BREAKING DOWN '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.

RELATED TERMS
  1. Batch-Level Activities

    In managerial accounting, production costs that are incurred ...
  2. Acceptance Sampling

    A statistical measure used in quality control. A company cannot ...
  3. Single Stock Future - SSF

    A futures contract with an underlying of one particular stock, ...
  4. Batch Clause

    A policy provision of product liability insurance that limits ...
  5. Contingent Order

    1. An order involving the simultaneous execution of two or more ...
  6. Order

    An investor's instructions to a broker or brokerage firm to purchase ...
Related Articles
  1. Markets

    Explaining Market Orders

    A market order is the most common order used to purchase a financial security.
  2. Trading

    Intermediate Guide To MetaTrader 4 - Order Types

    Traders have the option of placing different order types using the MT4 platform. Market OrderA market order is the most basic type of trade order and is used to buy or sell a security at the ...
  3. Trading

    Online Stock Traders

    Online stock traders place buy/sell orders for financial securities and/or currencies with the use of a brokerage's Internet-based proprietary trading platforms. The use of online trading ...
  4. Trading

    How To Start Trading: Order Types

    The types of orders you use can have a large effect on your trading performance, so understanding the different order types is important to your success.
  5. Trading

    Introduction To Order Types: Limit Orders

    Note: Use a limit order to guarantee a price. A limit order allows precise order entry. A limit order is appropriate if getting a specific price is more important than getting filled.A limit ...
  6. Trading

    Guide to TD Ameritrade's Thinkorswim - Trade Management

    The tools within thinkorswim are for conducting analysis and ultimately making trades. There are many ways to make and manage trades within the platform. This section will go over some of the ...
  7. Trading

    Making The Trade: Understand Order Types

    Buying and selling stock can be a lot like buying or selling a car. Traders should use and understand tools such as market orders, limit orders, day orders, and good-'til-canceled orders to ensure ...
  8. Investing

    Brokers and Online Trading: Accounts And Orders

    Types of Accounts Depending on what type of securities you hold, there are four major choices you have when opening an account: Cash Account: The basic account where you deposit cash to buy ...
  9. Trading

    Simulator How-To Guide: Advanced Trade Types

    So far, you've only bought and sold stocks using market orders, which is essentially you instructing your online brokerage to "trade the numbers of shares I've instructed you to at the current ...
  10. Trading

    How To Place Orders With A Forex Broker

    Learn how to set each type of stop and limit when trading currencies.
RELATED FAQS
  1. What's the difference between a market order and a limit order?

    Buy and sell trades with market orders at the present stock price and execute limit orders if the stock price falls within ... Read Answer >>
  2. How is the economic order quantity model used in inventory management?

    Understand what types of costs make up total inventory costs, and learn how the economic order quantity model is used to ... Read Answer >>
  3. How do I place a limit order online?

    Learn how a limit order is placed, the types of stocks it is most useful for and the specifications placed with it to suit ... Read Answer >>
  4. How do I place an order to buy or sell shares?

    Read a brief overview of how to open a brokerage account, how to buy and sell stock, and the different kinds of trade orders ... Read Answer >>
  5. How do I place a buy limit order if I want to buy a stock during an initial public ...

    Learn how to place a buy limit order to buy a stock during an IPO. IPOs can be full of risks, and buy limit orders are one ... Read Answer >>
  6. What is the difference between a buy limit and a sell stop order?

    Understand the differences between the two order types, a buy limit order and a sell stop order, and the purposes each one ... Read Answer >>
Hot Definitions
  1. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  2. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  3. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  4. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  5. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
  6. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is ...
Trading Center