View Single Post
  #2 (permalink)  
Old 06-30-2009, 02:42 AM
Kenny Rogers's Avatar
Kenny Rogers Kenny Rogers is offline
Senior Member
 
Join Date: Oct 2008
Posts: 684
Kenny Rogers is on a distinguished road
I don't think you understand the concept of FIFO. It is used as a queue, and is pretty standard practice in the real stock and futures exchanges. This is to prevent any kind of favor in hitting the filling of the order. If you place an limit order at 1.000 first, and the next guy puts in the order after you at the same 1.000 price. Then you order will be filled first because you are first in. Same as stops, first out.

This mostly is introduced to prevent the market makers from hitting their own orders while bypassing others. This prevents cheating by the market maker.
__________________
Life is a Gamble. You win some. You lose some. And life goes on.
Reply With Quote