Limit Order inside the spread

Created at 14 May 2013, 16:26
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ianj

Joined 14.05.2013

Limit Order inside the spread
14 May 2013, 16:26


Is the Limit order allowed to be inside the spread, or does it merely turn into a market order when the limit entry price is triggered - is it a real standing order that stands in the order book on the server matching engine  - ie can it be placed inside the bid/offer spread 

This is useful for making into wide spread illiquid pairs but it does not work if its a market order triggered at a limit price


@ianj
Replies

cAlgo_Fanatic
15 May 2013, 16:34

The limit order does not become a market order.

The limit order stands in the order book and it is filled at the asked price or better.

You can place a limit order inside the spread and it will be filled at the price you specify or better.

So, it  is "a real standing order" that stands in the order book on the server matching engine.


@cAlgo_Fanatic