Options Market Structure

Understanding Order Flow & Market Mechanics

Market Dynamics Guide

Learn how options markets operate, from order types to liquidity impact, with interactive examples.

Order Types & Execution

Different order types serve different trading objectives. Understanding when to use each type is crucial for effective trading.

Order Type Explorer

Liquidity & Market Impact

Understanding how your order size affects execution prices is crucial for minimizing trading costs.

Market Impact Simulator

10 contracts

Order Book & Spreads

The order book shows available liquidity at different price levels. The bid-ask spread represents the cost of immediate execution.

Order Book Explorer

Quick Reference

Key Concepts

  • Price-Time Priority
  • Order Book Depth
  • Market Liquidity

Best Practices

  • Size orders appropriately
  • Consider time of day
  • Monitor liquidity levels
  • Use appropriate order types

Trading Costs

  • Bid-Ask Spreads
  • Market Impact
  • Commission Fees