For the complete documentation index, see llms.txt. This page is also available as Markdown.
Passiveness
Passiveness determines how far limit orders are placed from the market price, balancing execution speed and price efficiency. A higher Passiveness value means the orders are placed deeper in the book, increasing the likelihood they will be filled passively (as a "maker") but decreasing the certainty of execution.
How It Works
Higher Passiveness (closer to 1) – Orders are placed deeper in the order book, reducing urgency but improving price efficiency.
Lower Passiveness (closer to 0) – Orders are placed closer to the best bid/ask, increasing execution probability but with a higher risk of adverse selection.
Considerations
Order Placements with High Passiveness
High Passiveness (e.g., 0.8) – Better Pricing, Slower Fills
Orders are placed deeper in the book, reducing market impact.
Suitable for large orders, minimizing execution costs in stable markets.
Order Placements with Low Passiveness
Low Passiveness (e.g., 0.2) – Faster Execution, Higher Fill Probability
Orders are placed closer to the top of the book, increasing fill probability.
Suitable for urgent trades, volatile markets, and short execution windows.
This setting allows traders to fine-tune execution behavior, balancing cost efficiency and execution speed based on market conditions.
