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Resting bids above market or offers below market?

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Market Wizard
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tpredictor View Post
However, you could in theory have an off book queue that would only move the orders to active state when the market moved above or below them.

As @addchild said, this is called a stop limit order.

The order has a stop price and a limit price and is off book when created.

When the stop price is touched, the order is moved to the book and becomes a regular limit order.

A stop limit buy order can only be set above the market (last traded price).

A stop limit sell order can only be set below the market (last traded price).

All major exchanges - including CME - offer stop limit orders.

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