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by esoterica
2785 days ago
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Fidelity isn't lying. The price improvement IS .04, not .01. https://www.sec.gov/reportspubs/investor-publications/invest... > 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 It's measured with reference to the quote, not your order price. Think about it, if you sent a limit order for $20.02 and got filled at $10.02, did you get $10 of price improvement? |
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Yes. That's a rather extreme example, but If I route a limit order for X and get filled for Y, my price improvement is X-Y, not the asking price - X. I guess it depends on if you consider the price of something to be the mid price or the bid/ask price.
As far as I am concerned Fidelity IS lying. The market on the thing could be 100.00/100.10, with a LAST trade price of 100.05. I route a limit order for 100.05 and get filled at 100.05 and fidelity claims I got price improved by 5 cents, which is bullshit.
edit: also, that page you linked and quoted is specifically talking about market orders:
> 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...