National Best Bid and Offer - NBBO

Filed Under » , ,
Dictionary Says

Definition of 'National Best Bid and Offer - NBBO'

A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
Investopedia Says

Investopedia explains 'National Best Bid and Offer - NBBO'

NBBO is the bid and ask the average person will see. Day traders usually use Level 2 market maker screens to see ALL the bids and offers for a particular stock.

The NBBO is updated throughout the day to show the highest and lowest offers for a security in all exchanges and market makers.

Related Definitions

  •

    Ask

    The price a seller is willing to accept for a security, also known as the offer price. Along with the price, the ask quote will generally also stipulate the amount of the security ...
    Read More »

  • Best Bid

    The highest quoted bid for a particular trading instrument among all those offered by competing market makers. The best bid is effectively the highest price that an investor is willing ...
    Read More »

  • Bid

    1. An offer made by an investor, a trader or a dealer to buy a security. The bid will stipulate both the price at which the buyer is willing to purchase the security and the quantity to ...
    Read More »

    • Bid-Ask Spread

      The amount by which the ask price exceeds the bid. This is essentially the difference in price between the highest price that a buyer is willing to pay for an asset and the lowest price ...
      Read More »

    • Spread

      1. The difference between the bid and the ask price of a security or asset. 2. An options position established by purchasing one option and selling another option of the same class but ...
      Read More »

    • Boston Options Exchange - BOX

      An all-electronic equity derivatives exchange launched on February 6, 2004, as a joint effort by the Montreal Exchange, Boston Stock Exchange and Interactive Brokers Group to provide an ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions