Limit order

A limit order is an order to trade at a chosen price or better, which rests on the book until it is filled or cancelled.

Definition

The documentation defines it as an order that executes at the selected limit price or better. Three options decide how long it may wait: good til cancel rests on the book until it is filled or cancelled, post only is added to the book and is only executed as a resting order, and immediate or cancel is cancelled if it is not immediately filled. A limit price that crosses the book does not wait at all: it fills at once, as a taker.

A limit that rests is the only way to be a maker, and that is most of the reason to use one. At the base perps tier a maker pays 0.015% of the notional where a taker pays 0.045%, and a maker providing more than 0.5%, 1.5% or 3.0% of the 14-day maker volume is paid a rebate of 0.001% to 0.003% on each trade instead of a fee. The price has to be on the market's grid: an integer multiple of the tick size, at most 5 significant figures and at most MAX_DECIMALS - szDecimals decimals. The maximum limit order value is ten times the maximum market order value.

What a limit order does not give is a fill. It can be passed by, and a price that merely touches it is not a certainty either: resting size at a level is not always taken when the market reaches that level and turns. Our replay counts a fill only once the price has gone through the level by the charter's throughBps, 0 by default and 5 basis points in the pilot's own charter, for exactly that reason. The pilot's ladder is made of limit orders resting on Hyperliquid, and the whole position leaves on a single limit at the average price plus 10% of the base stake.

Example

An example, in round figures. With the best ask at $100,000, a limit buy of 1 BTC at $99,000 rests on the bid and fills only if the price comes down to it. If it does, the fee at the base maker rate is 0.015% of $99,000, so $14.85, against $45 for a taker filling 1 BTC at $100,000. If the price never comes down, the order costs nothing and the trade never happens.