Categories
Trading Glossary

Passive Order

Passive Order is the trading order in which the order price is seems different from the market price.The order is passive when the trader to set the price to reach ahead to the buying selling. Passive order occurs when a trader sets a price which is different from the bid or ask price.A passive order sets a new price, creating a new level in the order book, waiting for other participants to hit it.The passive order can be placed when buying or selling a stock or other instruments.