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If we are quoting a high price to buy a stock compared to its current market price, we will be putting a limit order. ie We can buy all the shares upto the higher price that we have quoted. It will also depends on buy quanity that we placed.
Eg: if current price is Rs.100 , sellers are available for Rs.100 – 2 No, Rs.101 – 1 No, Rs.103 – 2, Rs.104 – 2, Rs.105 – 10 No and we placed buy order for 10 qty to buy at , Rs.102 – 105, then all the qty will not be bought at 105. It will be bought at Rs.100 – 2 No, Rs.101 – 1 No, Rs.103 – 2 No, Rs.104 – 2 No, Rs.105 – 3 No
the quoted price will be listed below the preferred price in the market in line with current market price
if a buyer quote higher price than its current market price means , he will goes down to the list of buyers because exchange gives first preference to market price
If the buyer quotes higher than the current market price then he will put front in the queue and trade will take place easily. But the buyer should analyse the risk properly before quoting.
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