Market order trading includes market buy order and market sell order:
【Market Buy Order】
That
is, according to the existing orders to complete the transaction. If
you request a market buy order, you will first trade with Sell 1. If
Sell 1's order is completed but your entrusted purchase volume is not
reached, you will trade with Sell 2. If it still does not reach the
entrusted volume, trade with Sell 3 again, and so on.
【Market Sell Order】
Similarly,
first trade with Buy 1, if the entrusted volume is not reached, then
trade with Buy 2, Buy 3, Buy 4 respectively until the entrusted volume
is reached.
Market
transactions are also called "eating orders", because it visually "eats
up" the buy and sell orders of others, such as buy 1 and sell 1, buy 2
and sell 2. Of course, using a limit price buy order far higher than
Sell 1 or using a limit price sell order far lower than Buy 1 can also
achieve the effect of "eating orders".
For example, if the current market is as follows:
-------------Price-----Order Quantity
Sell 5: 25 2
Sell 4: 24 2
Sell 3: 23 3
Sell 2: 22 2
Sell 1: 21 2
----------------------------------
Latest transaction price: 9.1
----------------------------------
Buy 1: 20 1
Buy 2: 19 2
Buy 3: 18 3
Buy 4: 17 2
Buy 5: 16 3
-------------Price-----Order Quantity
1. If Xiao Wang hangs a market buy order of 100 USDT, Xiao Wang's entrustment will result in the following transactions:
21 USDT, 2 transactions = 42 USDT
22 USDT, 2 transactions = 44 USDT
23 USDT, 0.6 transactions = 14 USDT
That is to say, Xiao Wang bought 4.6 coins with 100 USDT, and the average transaction price was 100/4.6 = 21.73 USDT.
2. If Xiao Wang sells 7 coins at the market price, Xiao Wang's market order will result in the following transactions:
20 USDT, 1 transaction = 20 USDT
19 USDT, 2 transactions = 38 USDT
18 USDT, 3 transactions = 54 USDT
17 USDT, 1 transaction = 17 USDT
That is to say, Xiao Wang sold 7 coins and got 20+38+54+17 = 129 USDT.
Special reminder:
Please
be cautious about market sell orders and market sell orders. When the
market transaction depth is sufficient, the market order may be traded
close to the current price, but when the market depth is insufficient,
it is very likely that sky-high transactions or ground transactions will
occur.
