How does the market price spreads?
There is no disseminated spread market that provides a benchmark price (such as the national best bid or offer [NBBO] for individual option series) for spread orders. Therefore, liquidity providers cannot be held to a net price on a spread order and you may not receive the NBBO on each individual leg of a spread. Spread trades are executed as a single trade and are not legged or paired as individual trades. When trading spreads, option prices on cross-markets may be misleading because the legs of the spread cannot be executed on different exchanges to get the NBBO for each leg. Both legs of the spread must be executed on the same exchange. Spread trades are executed as a single trade and are not legged or paired as individual trades. When trading spreads, option prices on cross-markets may be misleading because the legs of the spread cannot be executed on different exchanges to get the NBBO for each leg. Both legs of the spread must be executed on the same exchange. Spread trades are e
