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

    An order placed with a brokerage to buy or sell a set number ...
  2. Execution

    The completion of a buy or sell order for a security. The execution ...
  3. Specialist

    A member of an exchange who acts as the market maker to facilitate ...
  4. Order

    An investor's instructions to a broker or brokerage firm to purchase ...
  5. Batch Trading

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

    A broker-dealer firm that accepts the risk of holding a certain ...
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