agoscinski
commented
8 years ago We had the question: Client send limit order for 1000 quantity? Does he the server will buy 500 if only 500 are available under limit price? We will have two type of orders, first the work order which allows partially filled orders, and second all or none (AON) orders, which do not allow partially filled orders
market order (1): does not contain restrictions on the price or the time frame in which the order can be executed
limit order (2): an order to purchase a security at or below a specified price
stop order (3,4): a order which does nothing till a specified price has been reached, then it is transformed into a different order and executed.
e.g. the current price is 100 and stop order is at 80, then it should be transformed into an market order, as soon as the price goes below or equal 80 the market order will be executed. It is like a condition when to execute a different order
=> I believe because there are these type of stop orders in the protocol 3 = Stop 4 = Stop limit 'Stop' means 'Stop market' order (which goes also under the name 'stop loss'), so after the stop price is reached, it is transferred into a market order. This means the matching algorithm only has to deal with limit and market orders, since a stop order is only a limit or market order bound to a price