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Market Maker Peg

A limit order that, once placed/ entered, the bid or offer is automatically priced by the system, as per the...

MM Peg

It stands for market maker peg order; a limit order that, once placed/ entered, the bid or offer is automatically...

ETO

It stands for exchange-traded option; an option (exchange-traded derivative) that trades on organized and regulated exchanges, as opposed to options…

Market Maker

A financial institution (like a bank or a brokerage firm), or even an individual (a broker or trader), that always...

Third Market Maker

A third-party firm that stands ready to buy or sell exchange-listed stocks at publicly quoted prices, as opposed to market...

Stub Quote

A placeholder quote for stocks that is used by a market maker that wants to quote one side of a...

Effective Bid-Ask Spread

The difference between trade price and midpoint. That is, it is the difference between the price at which a dealer...

Non-ECN Broker

A broker who doesn't route orders of retail traders to an electronic communication network (ECN). This type of broker executes...

Spread

The difference between bid price (bid) and ask price (ask). It is the price difference between what a buyer is...

Market Maker

For a specific option, it is an individual trader who stands ready to quote both a bid and an offer price on the...