How does a currency exchange (like btc-e) work?

Question

Fintech

I am interested in technical questions, first of all - how is the price formed? Those. Let's say that on the stock exchange there is a trade of candy wrappers \ cookies and one candy wrapper costs 10 cookies. 5 people wanted to buy (each with a candy wrapper) for the price of 10 cookies apiece. At the same time, 2 people sell (each for a candy wrapper) at the same cost. What then will be the algorithm for forming a new price: how much should it be changed?

Answer 1

Look at the picture from here . On the left is the number of bitcoins, how much someone is willing to buy at that price, on the right is the number of bitcoins that someone is willing to sell at that price. As soon as there is a buyer / seller who agrees to such a price, the transaction is completed. For example, you agree to buy 500 bitcoins at a price of no more than 132 - when placing this application, you automatically buy two offers and stand at the top of the buyers for the rest. The current price will jump to 131.40 - the value of the last trade.