limit order tutorial. (adding/remove liquidity clarification)

Discussion in 'Order Execution' started by cqm, Feb 19, 2012.

  1. cqm

    cqm

    so I've been trading for some time but never needed to know all the various ways to add liquidity or get filled in certain ways.

    therefore, I have a couple of questions:

    lets assume the current spread is
    bid: 19.99, ask 20:00

    the posted market price is 19.995

    I know I can place a buy-limit order for

    17.00
    19.98
    19.99
    19.994

    and that these count as adding liquidity.

    but what about

    19.995
    19.997
    20.00
    20.001

    <b>Can I go above the midpoint and have that count as adding liquidity?

    Can I match an order from the ask side with a limit order and have that count as adding liquidity?

    Can I place a buy-limit order above the ask at all?
    </b>

    I've done all these things before but I never cared to examine it (if I got filled I got filled)