I had a doubt when going across the ways in which a trade happens. I have read that fora trade to happen, the buy order's price (bid) must match the sell order's price (ask). Now, what happens, if they are off by say 1/100th of a dollar. Will the trade still not happen? If it does, at what price will it trade?
All exchanges have minimum price fluctuations, or tick sizes, which is the smallest increment at which prices are discrete.
The buyers bid price must match the sellers ask price down to the tick size. Orders can't be listed beyond the minimum price fluctuation so by definition, a sellers price can't be "off" by any amount beyond the minimum price fluctuation.
Orders either match down to the tick or they don't.