CFA考试资料答案Kaplan Exam Qbank L2(考友版)R48 Trading Costs and Electronic Markets - Answers.pdf
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Question #1 of 16 Question ID: 1210883
An electronic trading strategy that is common when dealers are willing to trade at better prices
than they quote, most accurately describes:
A) leapfrogging.
B) hidden orders.
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3
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C) ickering quotes. 1
q
i
Explanation s
u
Quote leapfrogging occurs when a dealers quotes a wide spread, but then o ers a better price m
:
in response to other traders o ering better prices. Flickering quotes are exposed limit orders t
a
that electronic traders submit and then cancel shortly thereafter. Larger traders submit hidden h
orders when they do not want to reveal their standing orders to the markets.
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