What is the Alternative Display Facility (ADF)? The Alternative Display Facility (ADF) is a piece of market infrastructure run by FINRA. Institutions use it to post quotes and report trades. It’s called the Alternative Display Facility because the ADF is an alternative to an exchange for institutions to post quotes and report trades. It’s basically […]
An Intermarket Sweep Order (ISO) is typically a large order that gets sent to several exchanges simultaneously for the purpose of quickly taking as much liquidity as possible. The factor that divides the ISO from other order types is that it is exempt from the ‘trade-through’ aspect of the SEC’s Order Protection Rule (Rule […]
The world of day trading is fast-paced and intense. Profits can turn to losses in a matter of seconds if you hesitate or enter your order incorrectly, especially if you’re trading in volatile sessions. Precision is critical when day trading if you want to maximize your profits and minimize your losses. In order to […]
A market-on-open order is used to participate in the opening auction of an exchange. Because the MOO order is a market order, it guarantees execution, but not price. Interactive Brokers defines the market-on-open order as: “A Market-on-Open (MOO) order combines a market order with the OPG time in force to create an order that […]
Contingent orders require an event to occur to trigger their execution. They’re contingent on something happening. If that something doesn’t happen, the order is never executed and remains resting with your broker. These might also be referred to as “conditional orders.” Here’s how Nasdaq defines a contingent order: “An order which can be executed […]
What is the National Best Bid and Offer The Code of Federal Regulations defines the National Best Bid and Offer (NBBO) as: “National best bid and national best offer means, with respect to quotations for an NMS Security, the best bid and best offer for such security that are calculated and disseminated on a current […]
When trading stocks on a brokerage platform, there are a variety of stock order types you can use. Some order types are executed immediately, while others can only be executed at a specific price or time. It is therefore very important to familiarize yourself with the most popular types of stock orders and how […]
An iceberg order is an order type that allows you to conceal the true size of your order. These orders are increasingly common in today’s market as almost everyone has access to them. The idea is that instead of displaying your entire order (which might have a significant market impact), you display a comparatively […]
