Equities market data is provided from multiple sources including but not limited to Nasdaq Basic/Last Sale, the National Market System Plan (NMS) between 8:00 AM to 8:00 PM ET and BOATS (Blue Ocean ATS) for overnight trading sessions (8:00 PM – 4:00 AM ET). Options data is provided by the Options Price Reporting Authority (OPRA).
Regardless of the quote displayed, your orders are executed pursuant to best execution obligations, including compliance with NBBO requirements at the time of execution.
What Is Nasdaq Basic?
Nasdaq Basic provides real-time quotes and trade information based on activity on Nasdaq-operated venues. It includes:
Best bid and best offer from the Nasdaq Stock Market, Nasdaq BX, and Nasdaq PSX
Last sale data for trades executed on Nasdaq
Quotes for all National Market System (NMS) securities, including Nasdaq-listed, NYSE-listed, NYSE American-listed, and other exchange-listed stocks
Nasdaq Basic covers quotes for all NMS securities — including NYSE-listed and other exchange-listed stocks — but prices reflect trading activity on Nasdaq venues only.
Bid/Ask Spread
The bid/ask spread represents the difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask):
Bid — highest price a buyer is currently offering
Ask — lowest price a seller is currently willing to accept
Spread — the difference between bid and ask
A narrower spread typically indicates higher liquidity
A wider spread may indicate lower liquidity or higher volatility
For the most current bid and ask across all U.S. exchanges, refer to the consolidated NBBO quote shown on the order entry screen.
Using the Bid and Ask When Placing Orders
When entering a limit order, the bid and ask can help guide your price selection:
Buy limit orders set at or above the ask are more likely to execute
Sell limit orders set at or below the bid are more likely to execute
However, execution always depends on the NBBO at the moment your order reaches the market—not solely on the quotes displayed on certain screens.
Disclosures
Online trading has inherent risk due to system response and access times that may vary due to market conditions, system performance, and other factors. Before investing, an investor should understand these, and carefully consider the investment objectives, risks, charges, expenses, as well as reviewing the Self-directed Trading Account Risk Disclosure. Before trading outside of regular market hours, an investor should review Extended Hours Trading Disclosure and be aware of unique risks involved including lower liquidity, heightened volatility, wider spreads and pricing uncertainty. All investments involve risk and losses may exceed the principal invested. Past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns. Firstrade is a discount broker that provides self-directed investors with brokerage services, and does not make recommendations or offer investment, financial, legal or tax advice.