Trade or Fade Rule
An option exchange rule that prevents the occurrence of a trade through. Investopedia Says:
If a better bid is posted on another exchange for an option and a market maker is unwilling or unable to match it for a client order, the market maker may offer to trade with the other market maker. The market maker offering the better price must accept the offer and trade at the price offered or adjust the bid. Related Terms:
Bid
Exchange
Market Maker
Securities and Exchange Commission - SEC
Trade Through |