How does matching work on the Secondary Market?

Written by Korin Hedlund
October 15, 2025

The Secondary Market matches the highest buy order with the lowest sell order. The execution price depends on which order was placed first. We work with an SEC-regulated Alternative Trading System (ATS) that automatically processes buy and sell orders. During market hours, orders match as soon as there’s a price overlap—no auction process is used. Because the number of participants and frequency of new orders can vary, it’s difficult to know the exact price at which you’ll transact when submitting an order. For that reason, only place orders at prices you’re comfortable buying or selling at—you’ll always receive your set price or better.

Example 1:

• A seller lists shares at $10.25.
• A buyer submits an order at $10.50.
• Since there’s overlap, the system matches the two orders automatically.
• The execution price depends on which order was placed first—either $10.25 or $10.50.

Example 2:

• A seller lists shares at $10.60.
• The highest buy order is $10.50.
• Because there’s no overlap, the orders will remain open until one side adjusts their price or a new order is placed that creates a match.

After Hours:

Orders submitted outside of market hours will not match immediately. Once the market opens, any overlapping buy and sell orders will be reviewed and matched automatically at that time.