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Can someone explain the outcome to the follow scenario:

Buyer A places a limit order to buy 100 shares at $8.00, Seller B places a sale limit order at 7.50 for 40 shares. What price would Seller B receive for his shares?

I suspect $8.00, is that correct? B was the last to place the order so I presume $8.00. Whereas if the placement of the orders was reversed and B placed sale order at $7.50 and A placed a buy order at $8.00 that A would received 40 shares at $7.50.

Clarification anyone?

Dheer
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Peter
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  • Yes this is correct.

    Related question http://money.stackexchange.com/questions/15156/how-do-exchanges-match-limit-orders

    – Dheer Jul 01 '15 at 03:50

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