Jan 2nd 2014, 10:02:25
Firstly, let me check that selling goods on the market is First On, First Off.
So if Country A sells bushels at $35, and then Country B sells bushels for $35, then Country A's bushels will sell first.
Is that correct?
Secondly, how are standing orders filled. Let's say we have 4 countries:
Country A places a standing order for 1m bushels at $35 or less
Then, Country B places a standing order for 1m bushels at $34 or less <-- note the lower price
Then, Country C places a standing order for 1m bushels at $33 or less
Then, Country D places a standing order for 1m bushels at $34 or less
If 3m bushels comes onto the market at $32, what happens?
Is the earliest appropriate SO filled first (Country A)?
Is the closest dollar value SO filled first (Country C)?
So if Country A sells bushels at $35, and then Country B sells bushels for $35, then Country A's bushels will sell first.
Is that correct?
Secondly, how are standing orders filled. Let's say we have 4 countries:
Country A places a standing order for 1m bushels at $35 or less
Then, Country B places a standing order for 1m bushels at $34 or less <-- note the lower price
Then, Country C places a standing order for 1m bushels at $33 or less
Then, Country D places a standing order for 1m bushels at $34 or less
If 3m bushels comes onto the market at $32, what happens?
Is the earliest appropriate SO filled first (Country A)?
Is the closest dollar value SO filled first (Country C)?