European Best Bid And Offer - EBBO

AAA

DEFINITION of 'European Best Bid And Offer - EBBO'

The European equivalent of the National Best Bid and Offer (NBBO). The EBBO refers to the current best prices available for selling or buying a trading instrument such as a stock. On any exchange, a series of price levels appear for both the buy and sell sides. The EBBO represents the best price that is available - the lowest price for a buy or the highest price for a sell. The EBBO continually updates the prices so the market participant's have fair access to the best prices.

INVESTOPEDIA EXPLAINS 'European Best Bid And Offer - EBBO'

The EBBO guarantees that market participants have access to the best available prices at any given time. Where EBBO is supported, market participants' trade orders will be filled at or better than the EBBO price for a given trading instrument.

RELATED TERMS
  1. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee ...
  2. Best Ask

    The lowest quoted offer price among all those offered by competing ...
  3. Best Bid

    The highest quoted bid for a particular trading instrument among ...
  4. Bid-Ask Spread

    The amount by which the ask price exceeds the bid. This is essentially ...
  5. Inside Quote

    The best bid and ask prices offered to buy and sell a security ...
  6. Appraised Equity Capital

    The excess of the market value of an asset over its book value. ...
Related Articles
  1. An Introduction To Day Trading
    Active Trading Fundamentals

    An Introduction To Day Trading

  2. Day Trading Strategies For Beginners
    Trading Strategies

    Day Trading Strategies For Beginners

  3. Limiting Losses
    Active Trading Fundamentals

    Limiting Losses

  4. Introduction To Level II Quotes
    Active Trading

    Introduction To Level II Quotes

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center