Specific Order Types (Platform-Focused)

Definition: A cross order is executed when a buyer and seller within the same brokerage (or a matching system) agree on a transaction price without exposing it to the wider market.

Why It Happens: Often used by large institutions wanting to match internal client orders or pre-arranged trades efficiently.

Price Agreement: The trade takes place at a specific price agreed upon by both sides, which could be at, above, or below the current market price.

Lower Market Impact: Because these trades are often negotiated internally, they do not always push the market price around like a large market order might.

“Cross” Label: On the flow dashboard, Cross Orders might be flagged as “Cross,” “Internal Cross,” or a similar tag.

Volume Spike: A sudden jump in volume for a particular option or stock, paired with the “Cross” label, can signal a significant institutional trade.

Price Discrepancy: Sometimes, the fill price might not match the current bid/ask exactly, indicating an off-exchange or negotiated agreement.

Institutional Intent: Large cross trades may reflect a significant position change for an institution. Keep an eye on subsequent flow to see if it’s part of a bigger strategy.

Confirmation: A high-volume cross order, followed by multiple sweeps or blocks, can confirm that “smart money” is acting on new information or rebalancing a big position.

Definition: A sweep order involves breaking a large order into smaller “child” orders and routing them across multiple exchanges almost instantly.

Purpose: Typically used by aggressive traders—often institutions—who want to fill a large position quickly without tipping off the market too much.

Rapid Execution: Fills across numerous exchanges and price points within seconds.

Market or Limit Sweeps: Can be done at market or with a limit, but the main goal is speed.

“Sweep” Label: You’ll often see the word “Sweep” in the trade type column.

Fragmented Fills: Multiple smaller transactions at different prices and possibly across multiple exchanges, but all within a very short timeframe.

Urgent Volume: A big jump in options volume in just a few seconds, often near the ask (for bullish sweeps) or near the bid (for bearish sweeps).

Bullish or Bearish Conviction: Sweeps at or near the ask price for calls can signal strong bullish conviction; the same near the bid for puts can signal a bearish stance.

Momentum Indicator: Because sweeps show urgency, they often occur right before a sharp price move, or in anticipation of news/events.

Definition: Trades executed on the physical trading floor through open outcry or broker interaction, rather than purely electronic systems.

Historical Context: Before electronic markets, almost all trades went through trading floors. Now, floor orders represent a smaller share but can still be significant for large or complex trades.

Broker-Facilitated: An exchange floor broker represents the buyer or seller.

Negotiation & Price Discovery: Traders may negotiate prices verbally, especially for large blocks or nuanced orders.

“Floor” Label: Typically marked as “Floor” or “Open Outcry” in the execution type.

Block-Like Patterns: Floor trades can resemble block trades in size or premium, often standing out due to unusually large volume.

Institutional or Specialist Activity: Floor orders often indicate involvement by specialized brokers or big institutions.

Exotic or Complex Orders: Sometimes, floor trades are used for multi-leg or less common strategies that require a broker’s expertise.

Definition: Multi-leg options trades where a trader simultaneously buys and/or sells different options (calls or puts) with varying strikes and/or expirations.

Common Strategies: Vertical spreads, calendars, diagonals, straddles, iron condors, etc.

Multi-Leg Label: The platform may tag certain trades as “spread,” “multi-leg,” or “complex.”

Same Time Stamp: Typically, all legs fill around the same timestamp.

Matching or Complementary Quantities: E.g., buying 10 calls at one strike and selling 10 calls at another strike in a single transaction.

Debit vs. Credit: Check the net premium paid (debit) or received (credit). This reveals if the trader is betting on a move (debit spread) or on the market staying within a range (credit spread).

Strikes & Expirations: Determine if it’s a vertical spread (same expiration, different strikes) or a calendar spread (same strike, different expirations).

Directional or Volatility Play: Some spreads (like bull call spreads) are directional; others (like iron condors) profit from low volatility.

Institutional Strategies: Big spreads can indicate institutions managing risk or volatility exposure.

Less Obvious Sentiment: A spread might look neutral at a glance but could be part of a larger directional bias when combined with other legs or separate trades.