Orders, Execution & Market Structure

A movement of securities between demat accounts that is settled directly through the depository rather than through an exchange trade.

Test: securities move by depository instruction without an exchange trade and without clearing corporation involvement qualitative

An order that has been accepted by the exchange but not yet executed, cancelled or expired.

Test: the order rests in the book with unexecuted quantity remaining and validity not yet lapsed qualitative

Orders, Execution & Market Structure

The exchange's live record of all unexecuted buy and sell limit orders in a security, ranked by price and then by time.

Test: an order rests in the book until it is matched, modified, cancelled, or expires at the session close qualitative

Orders, Execution & Market Structure

The exchange process that pairs a buy order with a sell order at a compatible price to create a trade.

Test: a trade occurs when the best bid price is greater than or equal to the best ask price qualitative

Orders, Execution & Market Structure

The number of orders a participant submits for each trade actually executed, used by exchanges to price message traffic.

Order-to-Trade Ratio = Total Orders Submitted (including modifications and cancellations) / Number of Trades Executed ratio (x, times)