Passive Relative

The Passive Relative order submits a limit order at a less aggressive price than the National Best Bid and Offer (NBBO). Your price is automatically adjusted when the market moves. For a buy order, your bid is pegged to the NBB by a less aggressive offset amount*, and if the NBB moves up, your bid will also move up. For sales, your offer is pegged to the NBO by a less aggressive offset, and if the NBO moves down, your offer will also move down. In addition to the offset, you can define an absolute cap, which works like a limit price, and will prevent your order from being executed above or below a specified level.

For passive relative orders with a "0" offset, the order is submitted as a limit order at the best bid/ask, and will move up and down with the market to continue to match the inside quote.

If you have tooltips enabled, you can hold your mouse over the Limit price of the relative order and see the current exchange price for that order.

*The offset is the amount that will be subtracted from the best bid (for a buy order) and added to the best ask (for a sell order) to create the limit price at which the order will be submitted.

To enter a Passive Relative order

  1. Click in the Ask Price field to initiate a BUY order, or the Bid Price field to initiate a SELL order.
  2. Click in the Destination field to select Nasdaq.
  3. Next, in the Type field select PASSV REL as the order type.
  4. Enter the offset amount in the Offset Price field, or set a percent using the Pct. Offset field. If both fields have values the higher of the two will be used as the offset. To display the Pct. Offset field, hold your mouse over the Offset Price field until the “+” and “x” icons appear, and click the “+” icon. From the Prices category select Pct Offset.


For a more detailed description of Passive Relative orders, visit the Order Types information page.