Limit Order
Order Flow Analysis Glossary
An order to buy or sell a specified quantity at a specified price or better, which rests on the limit order book until matched or cancelled. Passive participants submit limit orders and wait for the market to come to them — passive buyers rest on the bid and passive sellers rest on the offer. Limit orders supply liquidity to the book; they execute only if an aggressive participant on the opposite side crosses the spread to meet them.
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