Microstructure · Core
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
A buy limit rests at or below your price; a sell limit at or above. Time-in-force (day, GTC, IOC, FOK) and posting vs taking decide queue and fees. You supply liquidity when you rest; you take when you cross.
Why it matters
The book is made of limit orders. Queue position, not just the limit, decides fill quality.
Case
A bid at the mid in a penny-spread name never holds queue and never fills; the same limit as a post-only in a wide name is the make rebate.
How to read it
State price, size, TIF, and whether you are posting. A limit without a queue story is a wish.
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