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Overview

The Exchange operates as a continuous central limit order book to match orders within the system according to price-time priority:
  • Higher-priced orders to buy have priority over lower-priced bids,
  • Lower-priced offers to sell buy have priority over higher-priced sells,
  • Within a price level, older orders have priority over newer orders,
  • Should an existing order increase its quantity (at the same price), it is assigned a new timestamp and therefore loses time priority, but quantity decreases retain time priority.

Tick Sizes / Minimum Quantity Increments

Each instrument on the Polymarket US has a minimum price increment (“tick size”) and minimum quantity increment (“lot size”). These instrument-level settings are indicated in the SecurityList [y] message in the MinPriceIncrement (969) and MinTradeVol (562) fields respectively. Order with a price and/or quantity which do not comply with these increments will be rejected using BusinessMessageReject [j] with reason 13 = Incorrect quantity or 18 = Invalid price increment (tick size).

Order Types, Time In Force & Execution Instructions

The intended behavior of orders entering the Polymarket US is controlled using a combination of OrderType (40), TimeInForce (59) and ExecInst (18) fields. These are explained in turn below.

Table 12: OrdType (40) definitions

Looking for a “classic” Market Order? Simply enter a Market-to-Limit order with IOC Time in Force condition.

Table 13: TimeInForce (59) conditions

In addition to order-level Time In force conditions, participants can also specify a minimum order quantity using MinQty (110), which requires that an order receives at least a minimum execution quantity upon entry (possibly in multiple fills). When used in combination with Time In Force, this field offers fine-grained control over the conditions under which an order can participate. For example:
  • An order marked as IOC with MinQty (110) of 200 must receive an immediate, minimum trade quantity of 200. If this is not possible, then the entire order immediately expires.
  • In the case of orders marked with a FOK TimeInForce (59), MinQty (110) can be included but has no material effect, as the FOK requires a full fill upon entry.
  • A Good Till Cancel order with a MinQty (110) specified must trade at least the specified quantity upon first entry into the order book, otherwise the order expires.
Note that MinQty (110) only limits order behavior as it enters the order book; it does not prevent smaller trades occurring against the order once it is resting on the order book.

Table 14: ExecInst (18) definitions