Split block trading


Split block trading is a method of trading execution that divides buy or sell orders into smaller lots to match the available supply or demand for a particular security. When trading stocks at market price, brokers tend to sell or buy whatever is available at the moment and trades the remaining portion when the opportunity is met. A client wishing to sell 100 shares can be split into 3 seperate blocks by the broker to expedite the trade. After the transaction at market or even a limit order, 100 shares can be unloaded into 30 shares at $20.11, 40 shares at $20.08 and 30 shares at $20.18.

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