390 Professional Orders Rule ("390 Rule") --- some questions

Discussion in 'Order Execution' started by elite1974, Jan 14, 2025.

  1. Robert Morse

    Robert Morse Sponsor

    I have no interest in copying customer trades.

     
    #11     Jan 15, 2025
    SimpleMeLike likes this.
  2. FSU

    FSU

    The rule refers to entering more than 390 orders (not trades) on a per day average in a month.
     
    #12     Jan 15, 2025
    SimpleMeLike likes this.
  3. Hello FSU,

    Thank you @FSU.

    So, if I am entering Calls options on SPY with contracts above 390 everyday, this is against the rules?
     
    #13     Jan 15, 2025
  4. FSU

    FSU

    If you enter more than 390 orders on a per day average in a month, you will be considered a Professional Customer and will have the restrictions I mentioned earlier, for the following quarter.
    Quantity and price changes in an existing order count as a new order.

    Again, this has nothing to do with the quantity of options you trade, the number of trades you make or the amount of options in an order. The rule speaks to the orders you enter.
     
    #14     Jan 15, 2025
    SimpleMeLike likes this.
  5. Thank you for explaining
     
    #15     Jan 15, 2025
  6. Bekim

    Bekim

    This if for 390 executed orders in one day right?
     
    #16     Jan 15, 2025
  7. elite1974

    elite1974

    as it says 2 posts up ....

    If you enter more than 390 orders (FOR OPTIONS) on a per day average in a month, you will be considered a Professional Customer
     
    #17     Jan 15, 2025
  8. Robert Morse

    Robert Morse Sponsor

    I suggest you read the rule RG16-064 i uploaded. We are asked to count orders not executed orders. If there are 20 trading days in a month, 390*20=7,800 - in that month you can’t send more than 7800 orders, which BYW, is one a minute. It is not “against the law” to do it, you just get tagged as a pro- customer for the next quarter.

     
    #18     Jan 15, 2025
  9. Anyone know if pegged orders that have prices changed by their broker count as a new order? Or would it have to be an order parameter change directly submitted by the customer themself to count as a new order?
     
    #19     Jan 16, 2025
    elite1974 likes this.
  10. Robert Morse

    Robert Morse Sponsor

    You need to ask your broker as this order type is typical of an ALGO ticket. You need to ask if the ALGO creates child orders from one ticket or new orders for each price change.

     
    #20     Jan 16, 2025
    jtrader33 and elite1974 like this.