Options Question
Trader X posts an offer at $2 displaying 100 shares with 500 shares in reserve. Then trader Y posts an offer at $2 displaying 1000 shares. Trader Z pays the offer for 600 shares. What happens?
Answer: Trader X gets filled for 100 shares and Trader Y gets filled for 500 shares
Questions is... Why would Trader X have 500 shares in reserve and how does that impact the trade? Suppose Trader is was displaying 600 shares with 0 in reserve, what would be the filling ratio between Trader X and Trader Y then?
Thanks in advance.
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