The National Best Bid and Offer (NBBO) is a regulation in the U.S. that ensures traders get the best available price when buying or selling stocks. The NBBO shows the highest bid price and lowest ask price across all exchanges, representing the tightest bid-ask spread.
Key terms
- •Best bid: The highest price someone is willing to pay for a stock.
- •Best offer/ask: The lowest price someone is willing to sell for.
- •Regulatory requirement: Under SEC rules, brokers must execute trades at the NBBO or better to ensure fair pricing for investors.
- •Consolidated data: The NBBO system aggregates prices from multiple exchanges to provide the most competitive bid and ask.
You’ll see the NBBO prices when executing a trade.
On Kraken Pro:
On the Kraken App:
