> In the real world if you submit a marketable buy order (limit price > best offered price) the match will happen at the best offered price which is $10.00 in your example. If it clears out all the shares available at that price level it will continue to match at the next best price until the order is fully matched or the matching sweeps up to the order limit price.
Thanks, this makes a lot more sense. I'll fix the article.
> This is not technically true either. A market order by definition has no limit price.
I figured that a market order was implemented as a limit order with a bid over the ask, but it makes sense that real world markets would have a special case order type for it.
Thanks, this makes a lot more sense. I'll fix the article.
> This is not technically true either. A market order by definition has no limit price.
I figured that a market order was implemented as a limit order with a bid over the ask, but it makes sense that real world markets would have a special case order type for it.