Price Priority
Market Microstructure glossary · Limit Order Book Mechanics & Order Routing Logic
Definition
The rule that orders at better prices execute before orders at worse prices.
Price Priority in plain English
When lots of people want to trade the same stock, the exchange needs a fair rule for who goes first — price priority says the best price wins. If you're buying, the person willing to pay the most gets served before someone offering less; if you're selling, the lowest asking price gets taken first. It's the same instinct as a seller naturally accepting the highest bid at a yard sale — better prices jump the line. This keeps the market honest: you can always improve your spot in line simply by offering a better price.
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