The Options Market Place - Order Execution

Most customer orders, which are market orders or executable limit orders, will be routed electronically to the trading post for automatic execution. The electronic system bypasses the firm’s commission house broker, the order is executed automatically, and an execution report is sent back to the brokerage firm. The more complex orders will be handled by the firm’s commission house broker. A member firm may not execute an order for a listed option off the floor of the exchange unless it has tried to execute the order on the floor and a better price is available in another trading venue.



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Types Of Orders


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RELATED TERMS
  1. Executing Broker

    The broker or dealer that finalizes and processes an order on ...
  2. Execution

    The completion of a buy or sell order for a security. The execution ...
  3. Market Order

    An order that an investor makes through a broker or brokerage ...
  4. Firm Order

    1. A market order to buy or sell a security for a brokerage's ...
  5. Automatic Execution

    A method of executing trades without inputting them manually. ...
  6. Limit Order

    An order placed with a brokerage to buy or sell a set number ...
RELATED FAQS
  1. How do financial advisors execute trades?

    Understand how financial advisors normally execute an investor's trades. Learn about the different type of markets and exchanges ... Read Answer >>
  2. What's the difference between a market order and a limit order?

    Buy and sell trades with market orders at the present stock price and execute limit orders if the stock price falls within ... Read Answer >>
  3. Why do limit orders cost more than market orders?

    Learn the difference between a market order and a limit order, and why a trader placing a limit order pays higher fees than ... Read Answer >>
  4. How do I place a limit order online?

    Learn how a limit order is placed, the types of stocks it is most useful for and the specifications placed with it to suit ... Read Answer >>
  5. What are the regulations surrounding limit order protection?

    Learn about the order protection rule enacted by the Securities and Exchange Commission (SEC) to ensure investors receive ... Read Answer >>
  6. Why is the execution of a limit order not guaranteed?

    Using a limit order to buy a stock can be helpful in securing certain prices, but the mechanics of a limit order can decrease ... Read Answer >>
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