Order Placement and Modifications
What happens to your order after you place it?
Market orders are executed on the exchange at the best available bid or best available offer. But sometimes due to lack of liquidity, there is no opposite bid or offer Or scattered at very far distance. This may lead to sudden price spikes in the market and triggers unconsequential price distortion and price discovery. To prevent this, there is Market Price Protection, that converts market orders to limit order if there is poor liquidity.
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