aggressive vs passive orders

Discussion in 'Order Execution' started by manustone, May 31, 2010.

  1. manustone


    hi all
    I am a newbie to trading so I hope anyone can help me.
    I think I have NOT clearly understood the difference between AGGRESSIVE ordes vs PASSIVE orders.

    If I am not wrong it is something dealing with order book levels right?
    # The AGGRESSIVE ones are the one that hit against the first level of the book to achieve a trade immediately
    # The PASSIVE one are set to a new price, creating a new level in the order book, waiting for other participants to hit it.

    Is this correct?
    I thank you very much.

    Kind Regards
  2. NumLock


    whatever you are reading or listening

    Stop it right now

    Focus on market limit stop orders

    learn what they mean

    forget scalping for ticks and pennies, go for 10 ticks minimum
  3. An aggressive order chases the price
    A passive order wait for the price to come to it.
  4. Passive is limit aggressive is market spend some time on Market Delta's website for more info.
  5. Aitch Eff Tee

    Aitch Eff Tee Guest

    Agressive orders are ones that are marketable and can be immediately matched when they are received by the execution venue (e.g. exchange) against passive orders resting in the limit order book.

    N.B. Agressive orders are not always market orders, limit orders can also be marketable depending on whether the limit price allows them to be immediately matched against any passive orders.
  6. manustone


    Hi All
    I thank you very much
    It is clear right now.