Educational only, not financial advice. Market rules and thresholds can change — verify current specifics with the exchanges or your broker.

Price improvement is when your order fills at a better price than the prevailing NBBO — saving you a little on the trade. It’s the upside of modern fragmented, competitive markets.

How it happens

When your marketable order routes to a market maker (often via payment for order flow), the market maker may fill you inside the NBBO — a buy below the best offer, a sell above the best bid. Even a fraction of a cent per share is price improvement. Wholesalers do this to attract flow and because they still profit on the spread.

Why it matters

For a single small trade, price improvement is tiny. But for an active scalper making many trades, small per-trade savings compound — it’s part of the total execution cost picture that matters more than headline commissions. Good execution (price improvement, tight fills) is a real, if quiet, edge.

Price improvement is the market handing you a slightly better fill than the quote. Trivial once, real over thousands of scalps.

What it means for a scalper

Favor liquid strikes and good execution to maximize the odds of price improvement and minimize the spread you pay. It’s the flip side of slippage — sometimes fills come back better. Reducing execution cost is exactly what NoVo’s adaptive routing is built to pursue.