Trade-Through Rule

The Trade-Through Rule prevents investors from paying more for a security than the current best available price across different markets. If an investor wants to buy or sell a stock, they are required to execute the trade at the best available price in the market. This rule helps ensure that investors get fair prices and that no one can bypass better prices offered elsewhere, fostering transparency and efficiency in the trading process. Essentially, it encourages trades to happen at the most competitive prices across all trading venues.