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.

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    You face the risk of losing the spread in a security with a bid and ask that are far apart when you enter a market order. ... Read Full Answer >>
  3. When should I use a trailing stop order?

    Trailing stop orders are used to limit losses and protect profits on a stock position. You should use trailing stop orders ... Read Full Answer >>
  4. How can I use a stop order to limit my losses on a long stock position?

    A stop order is a useful order type when you are trying to limit losses on your long stock position. When you are long a ... Read Full Answer >>
  5. What is the difference between a stop and a market order?

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  6. How can I use a buy limit order to buy a stock?

    An investor uses a buy limit order to buy a stock at a specific price or better price. Unlike a market order that takes the ... Read Full Answer >>
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