Definition

Limit Order

An order placed at a specific price, waiting for the market to come to it. The building block of liquidity.

Full Explanation

A limit order is patient. It names a price and waits. It guarantees the price if filled, but not that it will be filled — the market must come to it. Limit orders are what liquidity is made of. When aggression arrives at a price and fills against resting limit orders, those orders are consumed. The participant who placed the limit order got their price. The participant who placed the market order got immediate execution. This exchange is how every transaction in the market works.

In the Book 1 chapter

Chapter 2 · The Mechanics

Liquidity and Aggression

Every single trade has a buyer and a seller. That’s not an insight — it’s just math. For any transaction to happen, someone has to buy and someone has to sell. Which means that when you hear “buyers are in control right now” or “sellers are pushing price down,” you should pause for a second, because those phrases are telling you less than they sound like they are.

From the Blog 1 post

Why "Buyers vs. Sellers" Is the Wrong Frame

Every transaction has both a buyer and a seller. That's not insight — it's arithmetic. The question that actually matters is different, and until you're asking it, you're working with the wrong map.

Videos 1 video

Stop Saying "Buyers and Sellers" — Start Saying Liquidity and Aggression

Two people can both be buyers and be doing completely different things in the market . The key is not buyers vs sellers, it is understanding liquidity and aggression.