Limit Order
A limit order is a bid or offer at a specified price or better — you cap the price and accept that you may not trade.
Definition
Limit Order refers to you cap the price and accept that you may not trade. Keep that definition fixed when comparing series, managers, or regimes — renaming the same tape does not create a new signal.
Why it matters
Price formation at the venue layer decides whether a signal survives implementation. When you cap the price and accept that you may not trade shifts, related hedges, limits, and narratives usually need an explicit update rather than a quiet assumption.
Case
Suppose a desk is positioned for the opposite of what limit order is saying. If you cap the price and accept that you may not trade moves against that book, the first question is not “is the story clever?” but whether size, hedges, and stop logic still match the observation.
How to read it
Measure spread, queue, and impact at your size; paper fills are not a desk edge. Prefer a short written null hypothesis for Limit Order: what would falsify the current reading in the next window?