Trading Activities

Learn the trading-practice, product, and customer-order rules that drive most of the Series 57 exam.

Trading Activities is the dominant Series 57 chapter because it covers the trader-facing controls that appear most often on the exam. FINRA weights this function most heavily, and the outline makes clear why: a securities trader is expected to understand how orders enter the market, how quotes are displayed, how special product rules change execution behavior, and which conduct crosses the line into manipulation or other prohibited activity.

Read this chapter as a workflow. Start with general trading practices such as order types, market access, trading systems, clearly erroneous review, and quotation rules. Then move into product-specific trading issues such as IPO restrictions, penny-stock quoting, options, and short sales. Finish with customer-order obligations and Regulation NMS, because many exam questions test the point where execution behavior meets customer protection.

In this section

  • General Trading Practices
    Understand market making, order types, market access, trading systems, prohibited conduct, and quotation rules tested on Series 57.
  • Trading Specific Products
    Review the product-specific trading rules for offerings, penny stocks, options, and short sales on Series 57.
  • Customer Orders and Regulation NMS
    Learn best execution, order handling, prohibited customer-order practices, and Regulation NMS concepts tested on Series 57.
Revised on Thursday, April 23, 2026