What is a passive order?
An order is passive when traders set a price that stock must reach before they go ahead with buying or selling. In contrast, aggressive orders are when a trader executes the order to buy or sell straightaway.
Where have you heard about passive orders?
They're the most common kind of order and can help traders make sure they don't buy and sell below their target price.
What you need to know about passive orders.
They are not exactly 'passive' as they still require a clear and active trading strategy. However, they can be cancelled prior to execution. They have an expiration date attached to them so if the limit prices are not reached within the time-frame, a new order will have to be placed.