easy · Market Microstructure
In a FIFO (Price-Time Priority) market, Order A (Buy 500 at $10.00) arrives at 10:01 and Order B (Buy 500 at $10.00) arrives at 10:02.
If a market sell order for 600 shares arrives, how are the fills allocated?
- Neither gets filled because the sell order was larger than the individual buy orders
- Order A gets 500 shares, Order B gets 100 shares
- Both get 300 shares
- Order B gets 500 shares because it is 'fresher'
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