A security trade execution order situation in which two orders are received at the same time, and the order of execution is then determined by the rules of the particular exchange. The NYSE, for instance, stipulates that when two orders are received simultaneously that the order with the larger volume is to be executed first. The broker placing the smaller trade is informed that it was not executed because there was another "stock ahead".

Copyright©2009 by InvestorWords.com. ALL RIGHTS RESERVED.

Reproduction of all or part of this glossary and/or this page, in any format, without written consent is prohibited. If you have questions about this dictionary please feel free to contact us feedback\@\investorguide.com