Continuous Trading

Dictionary Says

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 Says

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 Definitions

  • Batch Trading

    A method of transacting different security orders that involves the accumulation of orders and their simultaneous execution.
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  • Execution

    The completion of a buy or sell order for a security. The execution of an order happens when it is completely filled, not when it is placed by the investor. When the investor places the ...
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  • Limit Order

    An order placed with a brokerage to buy or sell a set number of shares at a specified price or better. Limit orders also allow an investor to limit the length of time an order can be ...
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    • Market Maker

      A broker-dealer firm that accepts the risk of holding a certain number of shares of a particular security in order to facilitate trading in that security. Each market maker competes for ...
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    • Open

      1. An unexecuted order that is still valid. 2. The start of trading on a securities exchange.
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    • Order

      The instruction, by a customer to a brokerage, for the purchase or sale of a security with specific conditions.
      Read More »
    • Specialist

      A member of an exchange who acts as the market maker to facilitate the trading of a given stock. The specialist holds an inventory of the stock, posts the bid and ask prices, manages ...
      Read More »

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