A rule governing the exchange of options, stating that if a better trade is available on another market for a given bid, the market maker must match the better bid, or trade with the market maker offering the better deal. This rule was set up to prevent trade-throughs.
Related information about trade or fade rule:
- Trade Or Fade Rule Definition | Investopedia
An options exchange rule that requires the market maker to either match a better bid found on another market, or to trade with the market maker offering the ...
- What is trade or fade rule? definition and meaning
Definition of trade or fade rule: A rule governing the exchange of options, stating that if a better trade is available on another market for a given bid, the market ...
- What is fade? definition and meaning
disappearing deductible. Mentioned in these terms. trade or fade rule. Browse by Letter: #ABCDEFGHIJKLMNOPQRSTUVWXYZ. Resources. Browse by subject ...
- What is trade-through? definition and meaning
Related Terms. trade or fade rule. Mentioned in these terms. trade through rule. Browse by Letter: #ABCDEFGHIJKLMNOPQRSTUVWXYZ. Resources ...
- 34-43591
... other execution facilities, in conjunction with a trade-or-fade rule.32 Again, however, the exchanges did not agree to the Phase-In Plan and it was not adopted.
- Proposed Rule: S7-17-00
Aug 1, 2000... for the re-routing of orders received through automated systems to other execution facilities, in conjunction with a trade-or-fade rule.40 Again, ...
- * Breakout - (Business): Definition
See also: Breakout, Contrarian, Drawdown, Rally, Technical Analysis, Trend, Trend Analysis, Trendline ? Mentioned in. Trade or Fade Rule Trade Through .
- Battalio, Hatch and Jennings.pdf
sample periods. The SEC instituted the trade-or-fade rule in the option market in 1994. The lack of a firm quote rule for all market participants, coupled with ...