What is the 390 trade rule?

The 390 trade rule defines a specific threshold for classifying options traders as "professional" based on their trading activity. It is a key metric used to distinguish between different types of market participants, primarily impacting how they are charged for market data.

What is the 390 Trade Rule?

The 390 trade rule is based on the volume of options orders placed by a trader. Specifically, if a trader places an average of 390 option orders or more per trading day within a calendar month, they are classified as a "Professional" trader. This classification carries various implications, particularly concerning market data subscriptions.

For example, if a calendar month has 22 trading days, a trader would be considered professional if they placed an average of 390 orders per day, totaling approximately 8,580 option orders (390 orders/day * 22 trading days) or more during that month.

Criteria for Professional Classification

To clarify the definition and triggers of this rule, consider the following criteria:

| Aspect | Description