Imagine a stock with a high spread with only 1 buyer and 1 seller. If the stock is $1, and the seller ask is $1.10, and I am the buyer. And assume I do not know the book for the stock.
If put in a limit buy order for $1.20 to fill my order quickly. Will I pay $1.10 or will I pay $1.20? Or something in the middle. Is this depending on the broker? Will my broker fill it at $1.10 first and try to fill any other asks below $1.20 in order?
I've also noticed that you can apply algos to your order. What is the algo called which will execute orders from lowest ask to highest in order. Or is this not an algo but just the way brokers do it anyways.