aggressive vs passive orders

M

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
Mnstn
 
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
 
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.
 
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