Which characteristic defines a hidden limit order?

A hidden limit order is characterized by its lack of visibility regarding the quantity available to the market. This means that while the order is entered into the order book, the details surrounding the quantity remain confidential, effectively allowing the trader to maintain discretion over their trading intentions.

In practical terms, this feature of hidden limit orders can help reduce market impact and minimize potential adverse price movements that could arise from revealing the order size in full view of other market participants. By concealing the quantity, traders may execute large orders without signaling their trading strategy, thus avoiding possible front-running or other market manipulation behaviors.

Options that emphasize the order’s public visibility or other definitions are not applicable, as they contradict the fundamental nature of hidden limit orders.