DislikedI meant that prices can change without any trading having place on exchange. Passive orders like limit buy/sell constantly change as a result of supply/demand forces and sometimes can have impact on current bid/ask price without any real trading going on .... sorry if i wasn't clear in my post.
This would be a long topic and a bit difficult to explain.
In short... Limit order are irrelevant to current quotes moves.
Limit orders are static, they do not move they do not change... unless of course the party that place them, does change them, move them or cancel them. They do not change according to the current supply and demand.
Current orders.. or market orders is the only thing that change the quotes.
Without current orders, quote will not move. If the orders are balanced, quotes will not move.
Have you ever placed a limit order?... of course we all have. All stops (SL and TP are limit orders). Have your limit ever changed?, in size or price after you place it? Of course not. If the current quotes are 50 pips away, and a million people place limit orders at the same price you do... the volume of orders at that level increase... but is irrelevant to the current prices... The current prices will move closer or will go in the opposite direction according only to the "current" demand and supply.
Your limit order may never be hit.
In an hypothetical scenario if in one specific millisecond the whole world does not place a single "market" order... the quotes will not move. Pending order will not be filled. (No orders is a balanced market, 0=0)
A chronological example would be: (made simple for understanding).
Bank and Brokers quote euro/usd ask 1.3110/bid 1.3108 ... orders come in
1000 buy Euro, 1000 sell euro ... matched units... they do not need to move the quotes....(make 2 pips from buyer and 2 from seller).
Next orders, 3000 buy euro, 1000 sell euro. ..Immediately they move the quotes up 1/2 pip or so... to be able to buy the 2000 units and fill the order... and like that every single tick.
PS. We all know very well that if our limit orders are between 1 or 2 pips from current price... it is like a market order for the broker,, right? .