In a book Value in Time… came across following statement from author…
"I would like to point out
three basic rules that govern the largest stock markets (NASDAQ, New
York Stock Exchange, etc.):
- The price precedence rule says that if you offer to sell a stock at the
lowest price, your offer will be executed first. (If simultaneously John
offers to sell his shares at $10, Jim at $10.01, and Martin at $9.99,
Martin’s order will be executed first.) This guarantees that buyers also
get the best price for the stock they purchase. Buy orders that offer the
highest buying prices are also executed first.
- The time precedence rule says that buy or sell orders that have the
same price are ranked in their order of submission: The first to arrive is
executed first. (If John offers to sell his shares at $10, and five seconds
later Martin also offers his shares at $10, John’s order will be executed
first, followed by Martin’s.)
- A lesser-known rule is called the public order precedence rule. This
rule states that members of a public exchange cannot execute their
own orders ahead of orders from the general public that are standing
that members of the exchange will not use their superior information
to their advantage by trading ahead of the public."
firs 2 points are clear and fine. Please refer the 3rd point – public order precedence rule followed in NASDAQ. Is this so in NSE ?