limit bid

Definitions

1. 1

   An offer to buy in an auction for any value up to a specified maximum.

   • Consistent with this conjecture, Cornelli and Goldreich show that investors submitting price-limited bids receive larger allocations when the book contains fewer limit bids.
   • If a market again trades under the limit bid price or above the limit offered, go with the flow. These are trades that possess reasonable risk, because they indicate the previous support or resistance is now absent.
2. 2

   A bid that describes the bidders hand fairly precisely (indicating a small range of high…

   A bid that describes the bidders hand fairly precisely (indicating a small range of high card points and some indication of shape.)

   • OK, you are the captain (partner opened with a limit bid).
   • When the responder made a limit bid, the opener may already be in a position to name the final contract.
   • If you raise a partner's opening suit bid from one to two, it is also a limit bid, showing six to nine points.

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