Execution Method of Market Order at Continuous Trading

Under the individual competitive trading at multiple prices, the market order is deemed to have the price as follows until the whole quantity is matched:

  • A selling market order : if there is not any selling limit order, then, the lower between the last traded price and the lowest buying limit order, or if there is any selling limit order, then, one tick lower price than the lowest selling limit order.
  • A buying market order : if there is not any buying limit order, then, the higher between the last traded price and the highest selling limit order, or if there is any buying limit order, then, one tick higher price than the highest buying limit order.
Examples of Execution of Market Orders at Continuous Trading

Followings are some of the examples of execution and deemed price of a market order at continuous trading. (For the purpose of explanation, tick sizes are identical at KRW 100.)

Example 1. Best limit order + 1 tick
Example 1. Best limit order + 1 tick
Asks Price Bids Execution Result
  Market Order ② 200
  • Deemed Price : 10,700
    Best bid limit order + 1 tick > Counterparty's price
  • Execution Price : 10,700 (The price of the preceding order)
  10,800  
  10,700 200
(Deemed Price)
  10,600 ① 200
③ 200 10,500  
Last Traded Price 10,400  
The numbers such as ①, ② and ③ indicate the order in which orders have been received.
Example 2. Last Traded Price (Ⅰ)
Example 2. Last Traded Price (Ⅰ)
Asks Price Bids Execution Result
  Market Order ① 200
  • Deemed Price : 10,700
    Last Traded Price > Counterparty's price (In case where there is no limit order.)
  • Execution Price : 10,700 (The price of the preceding order)
  10,800  
Last Traded Price 10,700 200
(Deemed Price)
② 200 10,600  
  10,500  
  10,400  
Example 3. Last Traded Price(Ⅱ)
Example 3. Last Traded Price(Ⅱ)
Asks Price Bids Execution Result
  Market Order ② 200
  • Deemed Price : 10,700
    Last Traded Price > Counterparty's price (Only in cases where there are no limit orders)
  • Execution Price : 10,600 (The price of the preceding order)
  10,800  
Last Traded Price 10,700 200
(Deemed Price)
① 200 10,600  
  10,500  
  10,400  
Example 4. The highest of the counter-party's selling limit orders (Ⅰ)
Example 4. The highest of the counter-party's selling limit orders (Ⅰ)
Asks Price Bids Execution Result
  Market Order ④ 200
  • Deemed Price : 10,700counterparty's price > Best bid limit order +1 tick
  • Execution Price : 10,600 (The price of the preceding order)
  10,800  
① 200 10,700 200
(Deemed Price)
② 200 10,600  
  10,500  
Last Traded Price 10,400 ③ 200
Example 5. The highest of the counter-party's selling limit orders (Ⅱ)
Example 5. The highest of the counter-party's selling limit orders (Ⅱ)
Asks Price Bids Execution Result
  Market Order ① 200
  • Deemed Price : 10,600
    Counterparty's price > Best bid limit order +1 tick
    In case where there is a limit bid order, the last traded price (10,800) is not applied even though it is the higher.
  • Execution Price : 10,600 (The price of the preceding order)
  10,800 Last Traded Price
  10,700  
③ 200 10,600 200
(Deemed Price)
  10,500  
  10,400 ① 200