Hello.
1] I am trying to explore how the order book at the exchange works. I know that for every market order, there is limit order to consume.
But I was wondering if there are no limit orders and if two traders want to have a trade (both traders execute market orders in opposite directions) at the same time same quantity then will the trade occur?
2] There are specific levels on charts where we usually see battle between buyers and sellers. I was wondering if there are (maybe?) many market buy orders & market sell orders having transactions that are not actually dealing (getting exchanged against) limit orders?
3] Isn't it a valid trade if two market orders in opposite direction at same price, same time gets executed (without dealing with pending orders)?
Thanks.
-Amit
1] I am trying to explore how the order book at the exchange works. I know that for every market order, there is limit order to consume.
But I was wondering if there are no limit orders and if two traders want to have a trade (both traders execute market orders in opposite directions) at the same time same quantity then will the trade occur?
2] There are specific levels on charts where we usually see battle between buyers and sellers. I was wondering if there are (maybe?) many market buy orders & market sell orders having transactions that are not actually dealing (getting exchanged against) limit orders?
3] Isn't it a valid trade if two market orders in opposite direction at same price, same time gets executed (without dealing with pending orders)?
Thanks.
-Amit
-milkeyway