| Trade Execution: What Every Investor Should Know:Trade Execution:
What Every Investor Should Know
When you place an order to buy or sell stock, you might not think about where or how your broker will execute the trade. But where and how your order is executed can impact the overall costs of the transaction, including the price you pay for the stock. Here's what you should know about trade execution:

Trade Execution Isn’t Instantaneous
Many investors who trade through online brokerage accounts assume they have a direct connection to the securities markets. But they don't. When you push that enter key, your order is sent over the Internet to your broker—who in turn decides which market to send it to for execution. A similar process occurs when you call your broker to place a trade.

While trade execution is usually seamless and quick, it does take time. And prices can change quickly, especially in fast-moving markets. Because price quotes are only for a specific number of shares, investors may not always receive the price they saw on their screen or the price their broker quoted over the phone. By the time your order reaches the market, the price of the stock could be slightly – or very – different.

No SEC regulations require a trade to be executed within a set period of time. But if firms advertise their speed of execution, they must not exaggerate or fail to tell investors about the possibility of significant delays.

Your Broker Has Options for Executing Your Trade
Just as you have a choice of brokers, your broker generally has a choice of markets to execute your trade:
For a stock that is listed on an exchange, such as the New York Stock Exchange (NYSE), your broker may direct the order to that exchange, to another exchange (such as a regional exchange), or to a firm called a "third market maker." A "third market maker" is a firm that stands ready to buy or sell a stock listed on an exchange at publicly quoted prices. As a way to attract orders from brokers, some regional exchanges or third market makers will pay your broker for routing your order to that exchange or market maker—perhaps a penny or more per share for your order. This is called "payment for order flow."
For a stock that trades in an over-the-counter (OTC) market, such as the Nasdaq, your broker may send the order to a "Nasdaq market maker" in the stock. Many Nasdaq market makers also pay brokers for order flow.
Your broker may route your order – especially a "limit order" – to an electronic communications network (ECN) that automatically matches buy and sell orders at specified prices. A "limit order" is an order to buy or sell a stock at a specific price.
Your broker may decide to send your order to another division of your broker's firm to be filled out of the firm's own inventory. This is called "internalization." In this way, your broker's firm may make money on the "spread" – which is the difference between the purchase price and the sale price.
The graphic below shows your broker's options for executing your trade:

Your Broker Has a Duty of “Best Execution”
Many firms use automated systems to handle the orders they receive from their customers. In deciding how to execute orders, your broker has a duty to seek the best execution that is reasonably available for its customers' orders. That means your broker must evaluate the orders it receives from all customers in the aggregate and periodically assess which competing markets, market makers, or ECNs offer the most favorable terms of execution.

The opportunity for "price improvement" – which is the opportunity, but not the guarantee, for an order to be executed at a better price than what is currently quoted publicly – is an important factor a broker should consider in executing its customers' orders. Other factors include the speed and the likelihood of execution.

Here's an example of how price improvement can work: Let's say you enter a market order to sell 500 shares of a stock. The current quote is $20. Your broker may be able to send your order to a market or a market maker where your order would have the possibility of getting a price better than $20. If your order is executed at $20.05, you would receive $10,025.00 for the sale of your stock – $25.00 more than if your broker had only been able to get the current quote for you.

Of course, the additional time it takes some markets to execute orders may result in your getting a worse price than the current quote – especially in a fast-moving market. So, your broker is required to consider whether there is a trade-off between providing its customers' orders with the possibility – but not the guarantee – of better prices and the extra time it may take to do so.

You Have Options for Directing Trades
If for any reason you want to direct your trade to a particular exchange, market maker, or ECN, you may be able to call your broker and ask him or her to do this. But some brokers may charge for that service. Some brokers offer active traders the ability to direct orders in Nasdaq stocks to the market maker or ECN of their choice.

SEC rules aimed at improving public disclosure of order execution and routing practices require all market centers that trade national market system securities to make monthly, electronic disclosures of basic information concerning their quality of executions on a stock-by-stock basis, including how market orders of various sizes are executed relative to the public quotes.  These reports must also disclose information about effective spreads – the spreads actually paid by investors whose orders are routed to a particular market center. In addition, market centers must disclose the extent to which they provide executions at prices better than the public quotes to investors using limit orders.

These rules also require brokers that route orders on behalf of customers to disclose, on a quarterly basis, the identity of the market centers to which they route a significant percentage of their orders. In addition,  brokers must respond to the requests of customers interested in learning where their individual orders were routed for execution during the previous six months.

With this information readily available, you can learn where and how your firm executes its customers' orders and what steps it takes to assure best execution. Ask your broker about the firm's policies on payment for order flow, internalization, or other routing practices – or look for that information in your new account agreement. You can also write to your broker to find out the nature and source of any payment for order flow it may have received for a particular order.

If you're comparing firms, ask each how often it gets price improvement on customers' orders. And then consider that information in deciding with which firm you will do business.网页链接


JACKZHUO2015-12-06 14:31 | 交易执行:每个投资者都应该知道:交易执行:
当你下单买入或卖出股票,你可能不觉得什么地方或如何你的经纪人将执行该交易。但是,在与您的订单的执行方式会影响交易的总成本,包括您支付的股票价格。下面是你应该知道执行交易内容:交易执行不是瞬间谁通过在线经纪账户进行交易许多投资者认为他们有一个直接连接到证券市场。但他们没有。当您按下那个回车键,您的订单是通过互联网发送到你的经纪人,谁又将决定其市场将其发送到执行。当你打电话给你的经纪人进行交易时,会发生类似的过程。虽然交易执行,通常是无缝和快速的,但它确实需要时间。而且价格可以迅速改变,尤其是在快速变化的市场。因为报价只为股票的具体数量,投资者可能并不总是得到他们看到他们的屏幕上的价格或价格的报价经纪人通过电话。依照您的订单进入市场的时候,股票的价格可能会略有-或非常-不同的无SEC法规要求必须在设定的时间期限内执行的贸易。但是,如果企业做广告的执行他们的速度,他们绝不能夸大或无法告诉投资者有关显著延迟的可能性。你的经纪人对于执行你的交易期权就像你有经纪人的选择,你的经纪人一般有市场的选择执行你的交易:对于已上市的交易所,如纽约证券交易所(NYSE),你的经纪人可能会直接以该交换机,另一个交换(如交换分区)的股票,或到公司称为“第三个做市商。” “第三做市商”是一个公司,随时准备买入或卖出上在公开报价的交易所上市的股票。以此来吸引经纪公司的订单,一些区域的交流或第三方做市商将支付你的经纪人为您的订单路由到交易所或做市商,也许一分钱以上,每股的订单。这就是所谓的“支付令流。” 对于A股的交易在过度的柜台交易(OTC)市场,比如纳斯达克,你的经纪人可能会发送要想在股票的“纳斯达克做市商”。许多纳斯达克做市商还要经纪人的订单流。你的经纪人可能途径订单-尤其是“限价令” -一个电子通讯网络(ECN),可自动匹配以指定价格买入和卖出的订单。A“限价令”,是一种以特定价格买入或卖出股票。你的经纪人可能会决定您的订单发送到您的经纪公司的另一个部门要填写的公司自己的库存。这被称为“内化”。通过这种方式,你的经纪公司可以赚钱的“蔓延” -这是购买价格和出售价格之间的差额图形列出了你的经纪人的选项执行你的交易:你的经纪人有“最佳执行责任“ 许多公司使用自动化系统来处理,他们从他们的客户收到的订单。在决定如何执行的订单,你的经纪人有责任寻求最佳的执行是合理的供其客户的订单。这意味着,你的经纪人必须评估它收到来自所有客户的总订单和定期评估其竞争的市场中,做市商,或电子通讯网络提供执行的最有利的条件。对于“价格改善”的机会-这是机遇,但没有保证,一个为了一个更好的价格比目前公开报价来执行-是一个经纪人应该考虑在执行其客户订单的重要因素。其他因素包括速度和执行的可能性。下面是价格改善如何工作的一个例子:比方说,你进入一个市场以出售股票500股。目前的报价为$ 20 你的经纪人可能能够订单发送到市场或做市商,你的订单就必须得到一个价格超过$  20个更好的可能性。如果您的订单为$ 20.05执行,您将收到$  10,025.00出售的股票- $ 25.00比,如果你的经纪商才能够得到目前报价为您当然,更多的时候它需要一些市场执行订单可能会导致您得到一个更坏的价格比目前的报价-尤其是在快速变化的市场。所以,你的经纪人是需要考虑是否有提供其客户的订单的可能性之间进行权衡-而不是保证-更好的价格和额外的时间可能需要这样做,你有选择指导交易如果由于某种原因,你要指挥你的行业到一个特定的交易所,做市商,或ECN,你可以打电话给你的经纪人,并要求他或她这样做。但部分券商可能会收取该服务。一些经纪人提供活跃的交易者直接在纳斯达克股市订单做市商自己选择的ECN或能力。美国证券交易委员会规则,旨在提高公众披露订单执行和路由的做法要求贸易全国市场系统证券的一切以市场为中心,以按月,基本信息涉及的股票按股票的基础上执行其品质的电子披露,包括各种尺寸的市场订单是如何执行相对于对外报价。这些报告还必须披露的有效价差的信息-投资者的订单路由到一个特定的市场中心实际支付的价差。此外,市场中心必须披露的程度,他们提供执行的价格比对外报价,以使用限价单的投资者更好的。这些规则还要求经纪商代客户route命令公开,每季,身份市场中心它们路由他们的订单的一个显著百分比。此外,经纪公司必须应对的学习兴趣的客户,他们的个人订单在过去六个月路由执行的请求。有了这些信息随手可得,你可以了解在哪里以及如何你的公司执行客户的订单和哪些步骤才能保证最佳执行。请向您的支付企业的政策经纪人订单流,内部,或其他路由的做法-或寻找在新账户协议的信息。你也可以写你的经纪人,找出任何付款的订单流,可能收到特定订单的性质和来源。如果你比较事务所,要求每个如何往往得到客户的订单价格改善。然后再考虑在决定与哪些公司,你会做生意的信息。