Social and Behavioral Sciences Commons^™

Liquidity, Market Depth, And Informed Trading, Roy Roth, Dr. Scott Condie

Journal of Undergraduate Research

Hidden limit orders have been increasingly important in asset markets over the past several years. These orders are hidden in the sense that they are not displayed or announced in any way until another order is sent to the market that trades with the hidden order. Traditionally, the two major order types in asset markets are market orders and limit orders. A market order contains instructions to buy or sell a given number of shares of a specific asset immediately at the best possible price, while a limit order signals a trader’s willingness to buy (sell) a certain number of …