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.

BREAKING DOWN '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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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. What is the difference between a stop and a market order?

    Learn about market orders and stop orders, how they are used and executed, and the main difference between stop orders and ... 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 financial advisors execute trades?

    Understand how financial advisors normally execute an investor's trades. Learn about the different type of markets and exchanges ... Read Answer >>
  5. Why do limit orders cost more than market orders?

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