<p>In general, if an exchange wants to execute a buy or sell order without asking you, the relevant Bitcoins need to be held by an address that the exchange controls. When an order executes, and Bitcoins change hands, nothing changes on the blockchain. The only thing that changes is a record internal to the exchange. It's only when you withdraw the money from the exchange that anything changes on the blockchain.</p>

CC BY-SA 3.0
2017-03-10T20:45:53.020Z
Thanks for response! As I understood, the flow is something like: I deposit bitcoins to a wallet controled by exchage (transaction is added to blockchain) In a case of order execution no new transactions are opened in blockchain, but updates the value of btc on my account. And a transaction is opened when I withdraw btc back to my wallet. Is it correct?
jahra
CC BY-SA 3.0
2017-03-10T20:47:25.890Z
Yes, that's correct.
Nick ODell
CC BY-SA 3.0
2017-03-10T20:34:57.307Z
2017-03-10T20:34:57.307Z
Nick ODell
<p>I'm trying to understand the topic of blockchain and bitcoins as well. So, the only one question I want to get answer for: how do exchanges commit orders?
I mean, how the transaction could be started by exchange? As I understand, only the owner of wallet (with the pair of pub/private key) can start transaction for transferring some amount of btc. So, I can't find the information about "remote control" of wallet. Maybe I am wrong, please correct me.
And excuse me for my English. It's not my native language.</p>

CC BY-SA 3.0
2017-03-10T20:13:57.833Z
Are you interested in orders on an exchange (which never reach the Bitcoin blockchain) or withdrawals/deposits into an exchange (which are recorded on the Bitcoin blockchain) ?
Nick ODell
CC BY-SA 3.0
2017-03-10T20:26:58.763Z
I'm interested in the way how the exchange handles the user's wallet. I have some spaces in knowleges about work of exchange. So I want to know what happens when the exchange closes my order and about the flow of btc from one wallet to another.
jahra
CC BY-SA 3.0
2017-03-10T20:31:03.880Z
Does exchange work directly with my wallet or I have to make deposit/withdraw to exchange account?
jahra
<wallet><exchanges><exchange-order>
How do bitcoin exchanges commit the limit/market orders?
jahra
# How do bitcoin exchanges commit the limit/market orders?

(Asked by: username_0 on 2017-03-10)

I'm trying to understand the topic of blockchain and bitcoins as well. So, the only one question I want to get answer for: how do exchanges commit orders?
I mean, how the transaction could be started by exchange? As I understand, only the owner of wallet (with the pair of pub/private key) can start transaction for transferring some amount of btc. So, I can't find the information about "remote control" of wallet. Maybe I am wrong, please correct me.
And excuse me for my English. It's not my native language.

**Tags:** wallet, exchanges, exchange-order

> **Comments:**
> **username_1**: Are you interested in orders on an exchange (which never reach the Bitcoin blockchain) or withdrawals/deposits into an exchange (which are recorded on the Bitcoin blockchain) ?  
> **username_0**: I'm interested in the way how the exchange handles the user's wallet. I have some spaces in knowleges about work of exchange. So I want to know what happens when the exchange closes my order and about the flow of btc from one wallet to another.  
> **username_0**: Does exchange work directly with my wallet or I have to make deposit/withdraw to exchange account?  

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## 1 answers

### Answer by username_1 on 2017-03-10. Score: 2 | Accepted answer

In general, if an exchange wants to execute a buy or sell order without asking you, the relevant Bitcoins need to be held by an address that the exchange controls. When an order executes, and Bitcoins change hands, nothing changes on the blockchain. The only thing that changes is a record internal to the exchange. It's only when you withdraw the money from the exchange that anything changes on the blockchain.

> **Comments:**
> **username_0**: Thanks for response! As I understood, the flow is something like: I deposit bitcoins to a wallet controled by exchage (transaction is added to blockchain) In a case of order execution no new transactions are opened in blockchain, but updates the value of btc on my account. And a transaction is opened when I withdraw btc back to my wallet. Is it correct?  
> **username_1**: Yes, that's correct.  

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