Price Improvement

DEFINITION of 'Price Improvement'

Attaining a higher bid price, if you are selling a stock, or a lower ask price, if you are buying a stock, than the price quoted at the time your order was placed.

BREAKING DOWN 'Price Improvement'

You will often read in brokerage marketing pitches that price improvement is an opportunity and not a guarantee. Although most brokerages purport "fighting for that last 1/16" there is no guarantee of this actually happening.

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RELATED FAQS
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  2. What do the bid and ask prices represent on a stock quote?

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  4. Why are the bid prices of T-bills higher than the ask prices? Aren't bids supposed ...

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    When looking at stock quotes, there are numbers following the bid and ask prices for a particular stock. These numbers usually ... Read Answer >>
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