If a stock has a current ask of €30,-, and I place a bid of €31,-, I assume my order would get matched with the ask order of €30,-. Where does the €1,- difference go? Do I buy the stock for €30,50, does the asker get lucky, the bidder get lucky, or does the €1,- "disappear" into the system (e.g. the broker)?
To answer some questions:
- For the sake of the question I assume there are no fees involved.
- Why would I offer more? I could see this happen in two scenarios:
- A very volatile market, in which the price is going up rapidly, if I want to make sure I get the stock.
- I place my bid slightly higher than the last bid, and at the same time someone places an ask to match the previous bid. (In this case it'll be a matter of cents instead of €1,-, but I'm assuming the mechanics are the same.)