Hi all,
First of all, I am sorry for my noob question, I tried to google the answer, but it looks like the answer is so obvious (for everyone except me, haha) that nobody discuss this question.
On many exchanges I see the following logic of work:
- There are two Order Books: Buy and Sell
- There are two Order Forms (to create order): Buy and Sell
- If I click on the already created order from the Sell Order Book, it will auto fill the fields in the Buy Order Form.
- If I click on the already created order from the Buy Order Book, it will auto fill the fields in the Sell Order Form.
The question is what for do exchanges need it? What is the logic behind it?
Because, as far as I understand, even after I "autofill" the form, and click Buy (or Sell), the matching will not be toward the order price (that I filled) but for the best price? Or no? Or it will match toward price I filled and all the better prices, and therefore there will be more than one matching and several buys/ sells?
Please, help.
Hey, you are right, you can submit a buy order at for example 100 satoshi for a coin that has sell orders starting at 50 sat, this only means that you will buy all sell orders up to 100 sat as longs as your funds will last or buy a specific amount.
This is a good feature to be able to place small and fast orders. Other than that, you can check the order book for sell / buying pressure, if there are low amounts of buy orders you might want to place an order at a lower value and wait for a drop.
