A Relative Order allows a customer to enter a more aggressive price than the current market price, and have the entered price stay within a fixed interval to the market, should prices deteriorate.

For a buy order, the customer enters an offset amount which is added to the best bid price and submitted for order handling. During the next 5 seconds, if the best bid moves above the submitted bid, than we will match the best bid (additionally, if the changed best bid is on an exchange where we did not submit the order, and the exchange is not SuperSoes, Soes, or SelectNet, we will add the relative increment to the new best bid). After 5 seconds, if the order has not been filled and the market moves above the best bid of 5 seconds prior, a new price is submitted for order handling by adding the offset to the new best bid price. If after 5 seconds, the order has not been filled and the best bid of 5 seconds prior stays the same or moves down, the submitted price is not changed.

For a sell order, the customer enters an offset amount which is subtracted from the best offer price and submitted for order handling. During the next 5 seconds, if the best offer moves below the submitted offer, then we will match the best offer (additionally, if the changed best offer is on an exchange where we did not submit the order, and the exchange is not SuperSoes, Soes, or SelectNet, we will subtract the relative increment from the new best offer). After 5 seconds, if the order has not been filled and the market moves below the best offer of 5 seconds prior, a new price is submitted for order handling by subtracting the offset from the new best offer price. If after 5 seconds, the order has not been filed and the best offer of 5 seconds prior stays the same or moves up, the submitted price is not changed.

A customer may also enter an optional limit with the Relative Order. This prevents a Relative Order from executing at a price which is inferior to the limit. Refer to the examples below.

If the market is $50-50.25 for company XYZ and a customer enters a buy relative offset of $.10, the order would be submitted at $50.10. If the market moves to $50.11-50.36 within 5 seconds on the same exchange, the bid would be resubmitted at $50.21. If the order is not executed in 5 seconds and the market moves to $50.15-50.40, the order is resubmitted at $50.25. If the order is still not executed within 5 seconds and the market moves down to $50-50.25, the buy order is left at $50.25.

Optional Limit with the Relative Order
In the above example, if a buy limit were set at $50.45, the price could only reset to $50.45, and never above this price.