Why Stock Prices Differ Across Platforms: Data, Routing, and Slippage
Summary
The document explains several mechanisms that can make a stock’s displayed price differ across trading platforms: variation in data feeds and update delays, different order routing, and changes in liquidity across trading hours. It uses ADIL as an example, noting that small nominal price gaps can matter more for a low-priced stock. It distinguishes a last trade from consolidated best bid and offer data, and describes Level 2 order books as a view of resting buy and sell interest.
It also defines slippage as the difference between an expected and actual fill, especially around low-liquidity periods or fast-moving news, and recommends limit orders to constrain execution price. The article provides illustrative platform comparisons and fee claims but no independent measurement or sourcing for them. Its statements about 24-hour trading, platform features, fees, and ADIL pricing are time-sensitive; the document itself acknowledges that details may change. Readers should treat its platform rankings and promotional claims cautiously.
Key ideas
- Different data sources and refresh speeds can show different prices at the same time.
- Order routing and available liquidity can affect execution as well as displayed quotes.
- Consolidated best bid and offer data and Level 2 depth offer different views of the market.
- Slippage can increase during low-liquidity periods or rapid news events.
- Limit orders constrain acceptable execution prices, though the article gives no measured comparison of outcomes.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.