In a CLOB continuous trading session, what is the price outcome for a Market vs Limit trade?

In a CLOB continuous trading session, what is the price outcome for a Market vs Limit trade?

• A. RP
• B. Limit
• C. Arithmetic mean
• D. One price step

Answer: (B)

In a CLOB, orders sit in the book with specific prices, and trades occur by matching incoming orders with resting ones, following price-time priority. A market order has no price of its own; it takes the best available prices from the book. When a market order is matched against a resting limit order, the trade price is the limit price of that resting order. If the market order sweeps through multiple levels, each fill occurs at the corresponding limit price at that level. So the price outcome is the limit price.

In a CLOB, orders sit in the book with specific prices, and trades occur by matching incoming orders with resting ones, following price-time priority. A market order has no price of its own; it takes the best available prices from the book. When a market order is matched against a resting limit order, the trade price is the limit price of that resting order. If the market order sweeps through multiple levels, each fill occurs at the corresponding limit price at that level. So the price outcome is the limit price.