Participation Rate Limit

The Participation Rate Limit sets a maximum cap on the rate at which an order participates in the market, ensuring that execution does not exceed a predefined percentage of total market volume. This helps control market impact and maintain order pacing.

How It Works

• Defined as a maximum percentage of total market volume (e.g., a 15% limit means the order will never account for more than 15% of the market’s traded volume at any time).

• The engine will not exceed this rate during execution.

• If market volume decreases, the order may slow down or pause to maintain the limit.

Considerations

• Constrained Execution – If market volume is insufficient, orders may be underfilled or take longer to execute.

• Slower Execution – In low-liquidity conditions, the time to complete the order may be extended.

This setting is ideal for traders looking to limit market impact, ensuring that execution remains controlled and does not excessively influence market dynamics.