Aggressor

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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.

BREAKING DOWN '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.

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RELATED FAQS
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    Liquidity refers to how easy it is to buy and sell shares without seeing a change in price. If, for example, you bought ... Read Full Answer >>
  3. What are the determinants of a stock's bid-ask spread?

    Stock exchanges are set up to assist brokers and other specialists in coordinating bid and ask prices. The bid price is the ... Read Full Answer >>
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  5. Why do companies enter into futures contracts?

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