Understanding Order Types: Rapid Fire

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What this video covers

  • How the options rules use the National Best Bid and Offer (NBBO), while the equities rule uses protected quotations, and why equities do not define Stop Orders
  • What happens when an options Stop Order triggers: it becomes a Market Order and can fill worse than the stop price
  • Why an options Stop Limit Order becomes a Limit Order and may not fill, plus how immediate-or-cancel (IOC) accepts partial fills while fill-or-kill (FOK) does not
  • How Limit-on-Open, Market-on-Open, Limit-on-Close, Market-on-Close, and Imbalance Offset orders map to specific auctions, and why untraded quantity is cancelled
  • How the Trading Collar and Limit Order Price Protection (LOPP) use the $0.15, 10%, 5%, and 3% thresholds, plus the Qualified Contingent Cross (QCC) size requirement
  • Why a Reserve Order's replenished display gets new working time while its hidden reserve keeps the original entry time, and why pegged orders never route
  • How post-no-preference modifiers behave on a locked or crossed market, and when an Intermarket Sweep Order (ISO) can trade through a protected quotation

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This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Series 57 course also includes adaptive practice questions and spaced-repetition flashcards, available in Free Beta.

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