Passive Order

What it means

Passive orders provide liquidity because they sit and wait for someone else to trade into them.

What to watch

Passive size can look strong and still pull away. Traders should care about what actually gets traded, not just what briefly appears in the book.

Where traders usually run into this

Passive Order is most useful once it is tied to a concrete page, chart decision, or workflow question.

• Aggressive Order keeps this term attached to a real glossary instead of leaving it as standalone jargon.
• Limit Order keeps this term attached to a real glossary instead of leaving it as standalone jargon.
• Absorption keeps this term attached to a real glossary instead of leaving it as standalone jargon.

Best next page if this term is blocking you

If you understand the definition but still do not know what to do with it, start with Aggressive Order. That page is the fastest way to see how passive order shows up in a real glossary workflow.