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I am trying to understand the precencehow limit orders are fulfilled.

Example: Let's say on a given day only Alice and Bob send a sell order for Apple stocks.

  1. Alice, sell APPL at least: 450
  2. Bob, sell APPL at least: 500

Joe sends a buy bid of at max: 550, now what happens? Does Joe get Alice or Bob's share, and at what price?

P.S. the latest selling price of APPL is irrevelant I guess, since there are only two sellers.

Emmet B
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1 Answers1

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The price is going to be 450 with Alice selling the share, if Alice doesn't sell enough shares to cover Joe's buy order the remaining shares will be bought at 500 from Bob.

Check out this in-depth answer: How do exchanges match limit orders?

Koen vd H
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