Market Orders and Limit Orders

What this video covers

• The core distinction between a Market Order seeking the best price obtainable and a Limit Order requiring a specified price or better
• Why an options Market Order during Core Trading Hours needs both the national best bid (NBB) and national best offer (NBO), together called the national best bid and offer (NBBO), as disseminated by the Options Price Reporting Authority (OPRA)
• Why an options Market Order with only a same-side quote goes to trade collar protection instead of being rejected
• How equity Market Orders use the contra-side NBBO as a working price, and why a locked or crossed market flips that reference to the order's own side
• How the equity Trading Collar uses consolidated last-sale prices, holds an affected order undisplayed one minimum price variation (MPV) inside the collar, and does not cancel it
• How marketable equity Limit Orders work, and how limit order price protection (LOP) rejects prices using the exact fallback chain of quotes, the last consolidated round lot price, and the prior official close
• How the 10%, 5%, and 3% LOP bands apply at the $25 and $50 thresholds, why the percentage uses the reference price, how both sides round down to the MPV, and why the protection does not apply after a total trading halt in the stated auction-eligible scenario