How will Mt.Gox select matching orders if asking for a price that is higher than available prices

Question

E.g. if we have this order stock:

SELL 0.5 BTC @ PRICE $72 $/BTC (1)
SELL 3 BTC @ PRICE $75 $/BTC (2)
SELL 0.5 BTC @ PRICE $76 $/BTC (3)

And trying to buy 3.5 bitcoins for a price at $76.5 (higher than available prices). How will Mt.Gox select matching orders? Will it select the cheapest possible lines (1)&(2)? Is this equal to a market order?

score 1 · Accepted Answer · answered Mar 26 '13 at 14:35

1

Of course it would select the cheaper ones. It's a limit order.

answered Mar 26 '13 at 14:35

o0'.

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Ok. Trying to by 3.2 BTC for $76.5, it would process 3 BTC and leave 0.2 BTC, since there are no corresponding order? – embe Mar 26 '13 at 15:11
1

It would buy 0.5 at 72, and 2.7 at 75 – o0'. Mar 26 '13 at 15:16
The sales order of 3 BTC will probably leave a new sales order of 0.3 BTC at same price? (has partly processed the total sales order) – embe Mar 26 '13 at 15:40
Exactly, that's how it works. – o0'. Mar 26 '13 at 15:41

score 0 · Answer 2 · answered Apr 22 '13 at 11:11

Yes, it works like a market order that stops moving up at $76.5 that will always fill you on the best possible prices on the way up.

Professional traders actually use these kinds of "synthetic" markets orders most of the time, because market orders could possibly fill you at a price that you wouldn't want to get in a fast moving market. This is especially true with laggy exchanges like Mt. Gox.

How will Mt.Gox select matching orders if asking for a price that is higher than available prices

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