easy · Market Microstructure
Which of the following describes a 'Penny Jump' in a market with a 0.01 minimum tick size and FIFO priority?
- Placing an order 0.01 better than the current best bid to gain price priority.
- Reducing the spread by 50% to attract more volume.
- Placing an order 0.01 behind the best bid to wait for a fill.
- Executing a trade exactly at the midpoint of the NBBO.
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