Qbank - Passive traders

Passive traders emphasize: A) price in their trading and use limit orders. B) time in their trading and use market orders. C) price in their trading and use market orders.

A

A

Yes, A. Summary

Trader Types / Motivation /Preference/ Order Types Inofrmation-motivated / Time-sensitive information /Time / Market Value-motivated / Security misvaluations /Price / Limit Liquidity-motivated / Reallocation& Liquidity /Time / Market Passive / Reallocation& Liquidity /Price / Limit * LOS 30.j: Discuss the major types of traders, based on their motivation to trade, time versus price preferences, and preferred order types.