390 Professional Orders Rule

The 390 Professional Orders Rule is a regulatory guideline established by the Chicago Board Options Exchange (CBOE) to classify high-frequency options traders as professional Trader.

A customer will be classified as a Professional if they placed an average of 390 or more options orders per trading day during the previous calendar month.

How Orders Are Counted Under the 390 Rule

Every submitted options order—whether filled, rejected, or canceled—counts toward the 390-order threshold, including:

1. Single-Leg Orders

Each individual buy or sell order is counted separately.

2. Complex Orders

• 8 legs or fewer → Counts as 1 order

• 9 legs or more → Each leg counts as a separate order

3. Cancel and Replace Orders

• Each modification counts as a new order

• Exceptions apply when replacing "child" orders within a parent-child structure

4. Pegged Orders

Orders that adjust based on Best Bid Offer (BBO) or National Best Bid and Offer (NBBO) count as a new order each time they update.

For a full breakdown of order classifications, refer to the CBOE Regulatory Notice: 

https://cdn.cboe.com/resources/regulation/circulars/regulatory/RG16-064.pdf