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For a given stock, if:

  • a seller places a sell limit order at 100 dollars;
  • a buyer places a buy limit order at 200 dollars;

At what price will the transaction be executed and who will pay/get how much?

1 Answers1

3

At what price will the transaction be executed and who will pay/get how much?

There will be two transactions. The market maker will buy the stock from the seller for $100 and sell it to the buyer for $200.

D Stanley
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