<p>First account gets nothing.</p>

<p>Second account buys them starting from the lowest offer, going up.</p>

<p>Such as, there are sells:</p>

<ul>
<li>0.30 units @ a price of 100</li>
<li>0.10 @ 150</li>
<li>0.40 @ 650</li>
<li>0.80 @ 850</li>
<li>1.00 @ 1000 (your first offer)</li>
</ul>

<p>You post a limit order to buy 1.00 unit @ a maximum price of 1000, you get:</p>

<ul>
<li>0.30 @ 100 (total spent 30)</li>
<li>0.10 @ 150 (total 45)</li>
<li>0.40 @ 650 (total 305)</li>
<li>0.20 @ 850 (total 475)</li>
</ul>

<p>You got the amount requested (1.00 units), spending 475 instead of 1000 (the maximum you were willing to spend).</p>

<p>The new market depth will be:</p>

<ul>
<li>0.60 @ 850</li>
<li>1.00 @ 1000 (your first offer)</li>
</ul>

CC BY-SA 3.0
2013-04-16T08:55:01.220Z
THis doesn't match the example in the question which was buying 1.0 unit at $1000 not 1000 units.
dchapes
CC BY-SA 3.0
2013-04-16T08:59:32.300Z
So though my second account wants to buy only 1 BTC, it will end up buying 6.6 spending all 1000USD, rather than getting 1BTC at the lowest possible price (100 USD)?
mikkelbreum
CC BY-SA 3.0
2013-04-16T09:36:17.937Z
Fixed, sorry for the mess
o0'.
CC BY-SA 3.0
2013-04-16T08:47:26.313Z
2013-04-16T09:36:00.200Z
2013-04-16T09:36:00.200Z
o0'.
<p>I was wondering about how ASKs and BIDs are matched:</p>

<p>Say I set up two separate trading accounts on mtgox.</p>

<p>On my first account, I offer to sell 1 BTC for 1000 USD</p>

<p>...Nobody will buy it (at current rates) so a sell will not happen.</p>

<p>Now, on my second account I offer to buy 1 BTC at 1000 USD.</p>

<p>I guess everyone will take that offer, and the buy will happen.</p>

<p>But will I get the 1000 USD that my first account is willing to pay (being the highest match), or what will happen?</p>

<p>I have a feeling this is a 'stupid' question, but I have no experience in how trading systems work.</p>

CC BY-SA 3.0
2013-04-16T09:39:15.933Z
Under the traditional order book model, an offer to buy 1 BTC at 1000 USD is an offer to pay up to 1000 USD to buy 1 BTC.
David Schwartz
<exchanges><trading>
Will I pay BID price or lowest necessary amount?
mikkelbreum
# Will I pay BID price or lowest necessary amount?

(Asked by: username_0 on 2013-04-16)

I was wondering about how ASKs and BIDs are matched:

Say I set up two separate trading accounts on mtgox.

On my first account, I offer to sell 1 BTC for 1000 USD

...Nobody will buy it (at current rates) so a sell will not happen.

Now, on my second account I offer to buy 1 BTC at 1000 USD.

I guess everyone will take that offer, and the buy will happen.

But will I get the 1000 USD that my first account is willing to pay (being the highest match), or what will happen?

I have a feeling this is a 'stupid' question, but I have no experience in how trading systems work.

**Tags:** exchanges, trading

> **Comments:**
> **username_1**: Under the traditional order book model, an offer to buy 1 BTC at 1000 USD is an offer to pay up to 1000 USD to buy 1 BTC.  

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## 1 answers

### Answer by username_2 on 2013-04-16. Score: 5 | Accepted answer

First account gets nothing.

Second account buys them starting from the lowest offer, going up.

Such as, there are sells:

* 0.30 units @ a price of 100
* 0.10 @ 150
* 0.40 @ 650
* 0.80 @ 850
* 1.00 @ 1000 (your first offer)

You post a limit order to buy 1.00 unit @ a maximum price of 1000, you get:

* 0.30 @ 100 (total spent 30)
* 0.10 @ 150 (total 45)
* 0.40 @ 650 (total 305)
* 0.20 @ 850 (total 475)

You got the amount requested (1.00 units), spending 475 instead of 1000 (the maximum you were willing to spend).

The new market depth will be:

* 0.60 @ 850
* 1.00 @ 1000 (your first offer)

> **Comments:**
> **username_3**: THis doesn't match the example in the question which was buying 1.0 unit at $1000 not 1000 units.  
> **username_0**: So though my second account wants to buy only 1 BTC, it will end up buying 6.6 spending all 1000USD, rather than getting 1BTC at the lowest possible price (100 USD)?  
> **username_2**: Fixed, sorry for the mess  

---

