Which feature is included in a Limit Plus order?

Which feature is included in a Limit Plus order?

• A. It includes a minimum execution quantity
• B. It includes a negative price offset
• C. It guarantees full execution
• D. It can only be placed by authorized market makers

Answer: (A)

Limit Plus orders add a minimum execution quantity to a standard limit order. This means the order won’t be filled unless the trade size meets or exceeds the specified minimum. If the market can’t provide at least that amount at the limit price, no partial fill occurs and the order remains resting. This helps prevent small, noise trades and improves execution quality in markets with uneven liquidity. Other options aren’t features of a Limit Plus order: there isn’t any negative price offset involved, and there’s no guarantee of full execution simply because of this order type. Also, placing such orders isn’t restricted to authorized market makers.

Limit Plus orders add a minimum execution quantity to a standard limit order. This means the order won’t be filled unless the trade size meets or exceeds the specified minimum. If the market can’t provide at least that amount at the limit price, no partial fill occurs and the order remains resting. This helps prevent small, noise trades and improves execution quality in markets with uneven liquidity.

Other options aren’t features of a Limit Plus order: there isn’t any negative price offset involved, and there’s no guarantee of full execution simply because of this order type. Also, placing such orders isn’t restricted to authorized market makers.