Create a Relative Order

The relative order provides a means for traders to seek a more aggressive price than the National Best Bid and Offer (NBBO). By becoming liquidity providers, and placing bids or offers into the book that are more aggressive than what is currently quoted, traders increase their odds of execution. Quotes are automatically adjusted when other market participants become more aggressive. For a buy order, your bid is pegged to the NBB by a more 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 more 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.

NOTE: For 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.

NOTE: 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.

To enter a 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 Type field and select REL as the order type.

  1. Enter the offset amount in the Aux. 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:

  1. On the Page menu, click Layout.

  2. In the Columns - Order Row section on the right side of the page, check Pct. Offset and click OK.

You can modify the offset amount for several relative orders on the same trading page at one time. To do this, select multiple relative orders by holding the Ctrl key and clicking on each order.  After you have selected all relative orders, right-click on one of the selected orders and select Modify. In the Relative Order Modification box, define an offset or percent offset amount and click OK. All selected orders will be changed.

For a more detailed description of relative orders visit the Order Types information page.

 

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