Meaning of limit bid | Babel Free

Definitions

1. An offer to buy in an auction for any value up to a specified maximum.
2. A bid that describes the bidders hand fairly precisely (indicating a small range of high card points and some indication of shape.)

Examples

“I am still inclined to think⟳ the London auctioneers can be trusted, but I have⟳ little faith in the Germans. If you put⟳ a $20 limit⟳ bid by accident on a $1 autograph at a German auction, you are pretty sure to get⟳ it at $20. Like⟳ some other auctioneers, if they know⟳ your limit⟳ they will supply⟳ any amount of competition, honest or otherwise.”

“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.”

“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.”

CEFR level