// GLOSSARY

Resting order

A limit order sitting in the book waiting for the other side to come to it. Resting orders are the liquidity everyone else trades against; they earn maker treatment (often zero fees on Kalshi) but carry queue, timing, and adverse-selection risk.

An order rests when it can't execute immediately — a buy below the ask, a sell above the bid. From that moment it is the book: the depth other traders see and trade against.

Life in the queue

At each price level, venues generally fill resting orders in time priority: first posted, first filled. Rest 500 contracts at 43¢ behind someone else's 800, and a 1,000-contract seller fills their 800 and only 200 of yours. Queue position is why market makers care about posting early and why re-pricing (which usually sends you to the back of the new level's queue) is a real cost.

The risks of resting

• Non-fill: the market may never come to you.
• Adverse selection: the fills you do get cluster at the worst moments (see passive post).
• Staleness: news moves the fair price and your quote becomes free money for someone faster — the reason cancel latency and kill switches matter.

Managing a two-sided book of resting orders is the whole game in prediction market making 101.