Passive Buyer

Order Flow Analysis Glossary

A participant who rests a limit order to buy at or below the current bid and lets the market come to them. Passive buying is inferred from the footprint by large bid volume at a low that fails to produce further price decline — aggressive sellers hit the bid repeatedly, but the resting institutional buyer absorbs every sell and refreshes the bid. The ask volume at the same price is typically small, because aggressive buying is not what is driving the activity.

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