NBBO price cap

Discussion in 'Retail Brokers' started by jzamoras, Jan 23, 2008.

  1. jzamoras

    jzamoras

    Hi All, from IB website:

    Define the NBBO price cap by entering the "maximum allowable distance from NBBO." Note that NBBO price capping supersedes the exclusion of non-firm quotes, i.e. your order will be routed to a non-firm quote within the price cap over a firm quote outside the price cap.


    Can anyone give me a numerical example? It would be easier to me to understand.

    Best,
    Jaime