I'd like to ask what you folks consider reasonable and/or customary behavior in dealing with limit orders on an exchange.
Suppose there is a an ASK order for 1 Bitcoin at $15.
Then somebody submits a BID order for 1 Bitcoin at $16.
1. Do you think that the bidder who's willing to pay $16 should get a sugar deal and only pay $15?
2. Should the asker who's happy with $15 get a windfall of $16 instead?
3. Should the exchange software prevent the submission of the $16 Bid on the grounds that the best Ask is only $15 ?
Thanks in advance for your thoughts on this matter.
You assume you can enter a bid order at 16, which is illegal per definition of limit orders. Limit orders ONLY can be entered outside the execution price range. A limit 16 would be a market order.