easy · Order Flow Analysis market-mechanics-execution

In a continuous two-sided auction, what is the role of 'Passive Participants'?

  1. They are responsible for canceling all trades that result in slippage.
  2. They use only market orders to minimize their execution risk.
  3. They drive the price higher or lower by sweeping the book.
  4. They provide liquidity by resting limit orders for aggressors to hit.

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