Re: [RT] Minimum price increment

[Dan Goncharoff <TheGonch@xxxxxxxxxxx>]

To try a simple answer: the market will except limit orders at the
following sequence of price levels:

2.90
2.95
3.00
3.10
3.20

the market could be 2.95 at 3.10, but never 2.95 at 3.05

Regards
DanG

Brendan B. Boerner wrote:
<blockquote type="cite"
 cite="">
  
  
  
  <font face="Bookman Old Style"
 color="#0000ff" size="2">Thanks Dan.
   
  <font
 face="Bookman Old Style" color="#0000ff" size="2">Do you know how the
minimum tick works for an option which is trading @ $3.00 +/- 0.xx?
   
  <font
 face="Bookman Old Style" color="#0000ff" size="2">Does is become $0.05
when the last trade was < $3.00 and $0.10 when the last trade
  <font
 face="Bookman Old Style" color="#0000ff" size="2">was $3.00 and up?
   
  <font
 face="Bookman Old Style" color="#0000ff" size="2">How is min tick
enforced?  Will a broker not accept an invalid bid/offer if the bid /
off
  <font
 face="Bookman Old Style" color="#0000ff" size="2">doesn't honor the
min tick requirement?
   
  <font
 face="Bookman Old Style" color="#0000ff" size="2">Regards,
  <font
 face="Bookman Old Style" color="#0000ff" size="2">Brendan
  <blockquote
 >
    <font
 face="Tahoma" size="2">-----Original Message-----
    From: Dan Goncharoff   [mailto:TheGonch@xxxxxxxxxxx]
    Sent: Wednesday, June 11, 2003 9:51   PM
    To: realtraders@xxxxxxxxxxxxxxx
    Subject: Re: [RT]   Minimum price increment
    
    
from <a class="moz-txt-link-rfc2396E"
 href=""><http://www.cboe.com/OptProd/EquityOptions.asp>:
    
    Premium   Quotation:
Stated in points and fractions. One point equals $100.   Minimum tick
for options trading below 3 is .05 and for all other series,   .10.
    
Regards
DanG
    
Brendan B. Boerner wrote:
    <blockquote
 cite=""
 type="cite">
      Hello,

It's my understanding that for options below a certain amount ($3,
$5?)  that they trade in price increments of $0.05 and above that the
minimum price increment is $0.10.

I searched <a class="moz-txt-link-abbreviated"
 href="">www.cboe.com and <a
 class="moz-txt-link-abbreviated" href="">www.optionsclearing.com using keywords
such as "minimum price improvement increment" and didn't find the
details of these rules.

Can anyone point me in the right direction to find this info?

Thanks!
Brendan
      
    
  
  
 
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