Options Order Types and Their Routing Rules

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Chapters in this video

  1. 0:00 NOW orders and complex ratios
  2. 2:07 Delta-neutral rule of eight
  3. 3:05 Facilitation and ISO exchange rules
  4. 4:33 ALO, RALO, and midpoint crossing
  5. 6:43 QCC size and six conditions
  6. 7:50 PNP routing and priority rules
  7. 9:03 Rapid-fire exchange and routing recap

What this video covers

  • Why an unmarketable NOW order is cancelled immediately instead of resting or routing, and why marketability against the national best bid and offer (NBBO) matters
  • How Complex Orders use the one-to-three through three-to-one ratio range, including the ten-mini-options-to-one-standard-contract conversion
  • Why mixed mini and standard option contracts are excluded from Electronic Complex Order trading
  • How Stock/Option Orders and Stock/Complex Orders differ, including the delta-neutral branch and the rule of eight caps
  • How facilitation orders and Intermarket Sweep Orders (ISOs) differ under NYSE Arca and NYSE American rules, including the immediate-or-cancel (IOC) requirement
  • How Liquidity Adding Orders (ALOs), re-pricing ALOs (RALOs), midpoint crossing orders, and minimum price variation (MPV) rules affect rejection, repricing, and time priority
  • How QCCs qualify with 1,000 standard contracts or 10,000 mini options, and how each PNP type handles a locked or crossed market

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