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Order Splitting: Meaning, Execution, Example

investopedia.com · 1,052 words · saved by 1 readers

Order splitting refers to the practice of dividing a large order for the purchase or sale of securities into a series of smaller orders.

Close What Is Order Splitting? The term order splitting refers to the practice of dividing a large order into a series of smaller ones. This allows securities to be traded—whether they're bought or sold—with ease and can also make the order eligible for more rapid trade executions . Order splitting can help when market liquidity may be insufficient to satisfy a large order. Orders for securities on the Nasdaq were split through a special system, while other exchanges did so through stockbrokers. Most exchanges now execute these trades automatically. Key Takeaways Order splitting is the practic

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