Continuous Trading

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DEFINITION of 'Continuous Trading'

A method of transacting different securities orders. Continuous trading involves the immediate execution of orders upon their reception by market makers and specialists.

INVESTOPEDIA EXPLAINS 'Continuous Trading'

Unlike batch trading, which collects similar orders and executes them all at once, continuous trading entails the immediate placement of orders to market. In the U.S., all trades occur on a continuous basis except at opening.



For example, a limit order to sell a security is immediately sent to market and remains there until either the order expires or a buy order with a higher or equal buying price is sent to market.

RELATED TERMS
  1. Limit Order

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  3. Order

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  4. Specialist

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  5. Batch Trading

    An accumulation of orders that are executed simultaneously. Batch ...
  6. Market Maker

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