Your trade will execute at the “best price,” defined as the current highest bid (if you are the seller) or lowest ask (if you are the bidder) on the order book, similar to the stock market.

For example, if you would like to sell one share, and the current highest bid on the order book is $12, then you can sell your share at $12. If you input an ask price lower than $12, your trade will still execute at $12, because this is the best price.

The same mechanics occur on the other side. If you would like to buy a share, and the current lowest ask on the order book is $12, then you can buy a share at $12. If you input a bid price higher than $12, your trade will still execute at $12.

In short:

  • in order to instantly sell a share, you would need to submit an ask equal to or less than the highest bid currently on the order book to “match”

  • in order to instantly buy a share, you would need to submit a bid order that is equal to or greater than the lowest ask currently on the order book to “match”

Here are a few examples:

Matching bid

Here is a simple example where a $10 bid was submitted will match against the $10 ask on the order book. Both orders will be removed from the order book and executed at $10.

Order Book - $10 bid Submitted

Price

Bid

Ask

$11

3

$10

1

1

$9

4

Trade Log

Price

Shares

$10.00

1

Crossing bid

This is an example of a crossing bid. A $11 bid was submitted, which will match against the $10 ask already on the order book. Both orders will be removed from the order book and executed at $10.

The same result occurs as in the previous example, because regardless of how aggressive the bid is, it will be executed at the “best” price.

Order Book

Price

Bid

Ask

$11

1

3

$10

1

$9

4

Trade Log

Price

Shares

$10.00

1

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