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$21$

How Stocks Are Traded $-$ Market Order $-$ Example

Suppose that the current limit order book of MSFT shares are as follows:

$\backslash$table$[[$Bid$/$Ask$,$Price,Size$],[$Ask$,311\mathrm{.}10,100],[$Ask$,310\mathrm{.}05,500],[$Ask$,310\mathrm{.}00,600],[,,],[$Bid$,309\mathrm{.}00,100],[$Bid$,308\mathrm{.}95,200],[$Bid$,308\mathrm{.}90,50]]$

Q$1.$ A new market order arrives to sell $150$ shares. At what price$($s$)$ will this order be executed?

Q$2.$ What is the average price that this market order is executed?

$\frac{21}{42}$

How Stocks Are Traded