I have a question about the workings of a maker-market. This works for basically any product, but the example is quite nice for cryptocurrencies (due to their high volatility).
Consider a (fictitious) exchange abitofacoin.com. Suppose there is a sell order offering 1 coin for £1000, and a second sell order offering 1 coin for £1200. Suppose I want to buy 2 coins.
- Were I to place a single buy order for one coin at £1000 and then another for one coin at £1200, these would go through: I'd end up with 2 coins at a cost of £2200.
- Instead suppose that I place a single buy order for 2 coins at £1200 (per coin): I'd end up with 2 coins, but would I be charged £2400 (ie £1200 to both) or would I be charged £2200 (ie £1000 to the first and £1200 to the second)?
I have the same question for reversing the rolls. Suppose I have some coin to sell. If there is a buy order for £800 and for £1000, if I offer two coins for £800 would one sell for £1000 and then next for £800 or would the person saying they'd buy for £1000 only have to pay £800?
I suppose one reason why they may do the case that's worse for me in the above methods is to try to incentivise being a maker rather than a taker.