Aggressor

AAA

DEFINITION of 'Aggressor'

The party in a trade that initiates the deal. The aggressor works with the dealer, who takes a passive role and posts the bid and ask quotes. The aggressor in a transaction will typically attempt to instigate the deal and push it forward in order to obtain financial benefit.

INVESTOPEDIA EXPLAINS 'Aggressor'

In order flow, trades are considered "positive" or "negative" depending on whether the aggressor is buying or selling. For example, an aggressor selling 10,000 units will create an order flow of -10,000 with the dealer. Because commodity futures must have a buyer and seller who execute a trade simultaneously, the dealer in the aforementioned example will have a positive 10,000 order flow.

RELATED TERMS
  1. Ask

    The price a seller is willing to accept for a security, also ...
  2. Bid-Ask Spread

    The amount by which the ask price exceeds the bid. This is essentially ...
  3. Bid

    1. An offer made by an investor, a trader or a dealer to buy ...
  4. Price Tension

    The phenomenon by which the seller of a particular good, service ...
  5. Price Stickiness

    The resistance of a price (or set of prices) to change, despite ...
  6. Cash-And-Carry Trade

    A trading strategy in which an investor buys a long position ...
Related Articles
  1. What is the difference between a broker ...
    Investing

    What is the difference between a broker ...

  2. Principal Trading and Agency Trading
    Investing Basics

    Principal Trading and Agency Trading

  3. The Basics Of The Bid-Ask Spread
    Investing Basics

    The Basics Of The Bid-Ask Spread

  4. What number of shares determines adequate ...
    Options & Futures

    What number of shares determines adequate ...

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center