A short tutorial by Kardec Trader explaining that every trade typically involves an aggressor (the participant submitting a market order) and a passive participant (one placing limit orders). The speaker contrasts aggressive participants—who use market orders to execute immediately—with passive participants—who use limit orders to wait for desired prices.
Now, these are a few things I want you guys to understand. On every single trade, there's usually an aggressor, a participant that wants to be aggressive, be it the buyer, be it the seller. Whoever's the aggressor is typically going in with a market order. They're saying, I'm willing to pay whatever I want for this particular security at this time. So I will be the aggressor. I will go in with my market prices. Then you have a passive participant. I'm just going to put pass. Who usually goes in with a limit order. These are participants that are passive, and they're very important, too. But their order types are limit orders. So once again, we have passive participants and aggressive participants. Aggressive participants are going in with market orders. Passive participants are going in with limit orders.
