Which term describes an order placed to provide liquidity by resting on the order book?

Which term describes an order placed to provide liquidity by resting on the order book?

• A. Market order
• B. Stop order
• C. Limit order
• D. Poster order

Answer: (D)

Think about liquidity from the perspective of adding quotes to the market. When you place an order that sits in the order book, waiting to be traded against, you’re providing liquidity — you’re making a quote available for others to hit. The term that captures this idea of posting an order so it rests on the book and can be traded against is a poster order. It’s essentially an order placed to be a maker, not a taker. Market orders, by contrast, immediately take liquidity by matching with existing resting orders. Stop orders are triggers that become active only when the price reaches a preset level, and they aren’t about posting quotes. A limit order can sit on the book, but the specific concept of actively posting to provide liquidity is described by poster (post-only) orders, which aim to place the order in the book rather than execute right away.

Think about liquidity from the perspective of adding quotes to the market. When you place an order that sits in the order book, waiting to be traded against, you’re providing liquidity — you’re making a quote available for others to hit. The term that captures this idea of posting an order so it rests on the book and can be traded against is a poster order. It’s essentially an order placed to be a maker, not a taker.

Market orders, by contrast, immediately take liquidity by matching with existing resting orders. Stop orders are triggers that become active only when the price reaches a preset level, and they aren’t about posting quotes. A limit order can sit on the book, but the specific concept of actively posting to provide liquidity is described by poster (post-only) orders, which aim to place the order in the book rather than execute right away.