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Market Intelligence › Basic Terminologies
The link with queue priority, and which is better when
Published by The Retail Trader · AUG 05, 2026 · Order Flow
To change the price of a pending order there are two routes — modify it, or cancel it and place a new one. The outcome of the two is not the same.
In the order book there are many orders at the same price, and they line up by time. The order that came first fills first.
When you change the price, that priority is lost — the order goes to the end of the line. Reducing the quantity often keeps the priority; increasing it does not.
These points come into the decision:
• In a liquid stock, queue priority makes no particular difference.
• In an illiquid stock it alone decides whether you get filled.
• Modify and cancel usually carry no charges, but there are order rate limits.
• Modifying again and again behaves like an algo and can run into limits.
Modifying an order again and again while chasing the price is the most common intraday habit, and it often ends in a fill you did not even want. Fix a price and let it stay there — or skip the trade.
This article is for educational purposes only — it is not a buy or sell recommendation, makes no guaranteed-return claim, and is not advisory. Rules, rates and mechanics are changed from time to time by the exchanges, SEBI and RBI, so verify every number yourself with your broker or an official source.