“Hitting” refers to aggressively taking liquidity from the market by executing trades at posted bid or offer prices rather than waiting for fills at better prices. When traders “hit the bid,” they sell at the best available bid price, while “hitting the offer” means buying at the best available ask price. This approach prioritizes immediate execution over price optimization.

Hitting is common during fast-moving markets, news events, or when traders need immediate execution regardless of slight price disadvantages. The strategy contrasts with passive order placement that waits for market prices to come to the trader. Understanding when to hit versus when to wait is crucial for optimizing execution costs and timing.

Real-world example: A news announcement causes EUR/USD to spike, and a trader immediately hits the bid at 1.1050 to exit a long position quickly rather than risk further losses by waiting for a better price.