The Three Order-Type Rules and Their Vocabulary
Chapters in this video
What this video covers
- How the New York Stock Exchange (NYSE) American options rule, the NYSE Arca options rule, and the NYSE Arca equities rule divide options contracts from equities securities
- Why the two options rules do not apply to trading on Pillar, and how a Directed Order means different things in equities and options
- How the national best bid (NBB), national best offer (NBO), and national best bid and offer (NBBO) anchor options definitions, with quotes disseminated by the Options Price Reporting Authority (OPRA)
- What the protected bid (PBB), protected offer (PBO), and protected bid and offer (PBBO) labels mean, and the three-part test for a protected quotation
- How entering, working, and display prices differ, how the minimum price variation (MPV) measures adjustments, and why working and display prices can diverge
- How incoming instructions apply on arrival before resting functionality governs the remaining balance, including day, immediate-or-cancel (IOC), and good-till-canceled (GTC) modifiers
- How the four equities priority labels work, and why Reserve Orders and primary pegged orders can split between display and non-display priority
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