Let's say a trader is trading in a LOB and he places an order deep in the book. How close can he be to the touch until he has temporary or even permanent price impact? This assumes he cancels after T amount of time and does not get executed.
Most models show price impact of a trade. What is the impact of an order? An order at the touch must have some impact since many participants use the microprice/imbalance as a signal of future price movements.