Calculate Average Price of Market Order in a thin order book:
Calculate Average Price of Market Order in a thin order book:
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EllipticalInitial · External communityPost link
External question — Personal Finance Stack Exchange
Author: EllipticalInitial
Original post: https://money.stackexchange.com/questions/150199
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
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Take the following UST/USDC order book:
Suppose I were to place a market order to buy $10,000 USDC worth of UST. How would I calculate the average price the order would be filled at? Would this math calculate it correctly?
Where Avg Price = sumproduct( (2), (3) ) / Total
Or would it all be filled at 1.0003? I'm pretty sure it would be the former but I guess I'm not sure since the order book displays the current price as 1.0003. Would my market order get broken into the four orders I have in the second picture and fill each one individually or is it done some other way?
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Bob Baerker · External communityPost link
External answer — Personal Finance Stack Exchange
Author: Bob Baerker
Original post: https://money.stackexchange.com/a/150200
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
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You have some small rounding errors and one bad typo:
25,481.719 time 1.0013 isn't equal to 7,046
It's 7,034.1653
Other than that, yes, the average price would be 1.00120 .
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Quoted from Forex.com.bd-Editorial External question — Personal Finance Stack Exchange Author: EllipticalInitial Source score (net votes, not local likes): -1 Original post: https://money.stackexchange.com/questions/150199 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. Take the following UST/USDC order book: Suppose I were to place a market order to buy $10,000 USDC worth of UST. How would I calculate the average price the order would be filled at? Would this math calculate it correctly? Where Avg Price = sumproduct( (2), (3) ) / Total Or would it all be filled at 1.0003? I'm pretty sure it would be the former but I guess I'm not sure since the order book displays the current price as 1.0003. Would my market order get broken into the four orders I have in the second picture and fill each one individually or is it done some other way?
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