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Fullyarticulate, Back to OP question, "Is it better to leg into a credit spread OR enter the order as a credit spread if the comission is the same?"

How many types of market makers are there? Firms like Timberhill make markets for many products. Anybody have any ideas at all what kind of returns they make per annum on their funds? What about smaller market maker firms or smaller individual locals/market makers? How many out of 10 are...

Market makers have an edge. Do they need to make a directional or volatility prediction in order to profit?

Hi VSTscalper, I have no idea how truthful you are but you are doing everything that are considered detrimental to profitability: scalping incurs most commission, and the fact that you use market orders most of the time only worsens the situation. I have never seen any system that trades...

If you go for 2 ticks profits, how big is your stop loss? Do you increase position after every loss or still trade 4 contracts?

You mean in markets with market makers, there is less volatility? Are locals in pit considered to be market makers too? If yes, do they sometimes run stops and create more volatility?

Aren't CL pit traded only? What about options on CL, are they available through Interactive Brokers and if yes, what is the liquidity like compared to pit volume? Similarly, what is the CL futures's bid/ask spread like compared to pit traded ones?

Hi Mark, Why then do you choose to trade products with no public papers? As it is, the bid/ask is already very high and it helps if you can bargain for a good price. And, with such huge spread, isn't the odds highly stacked against the sellers if and when they decide to cover? That is, in the...

What is VST? And do you scalp both directions or only in the direction of the dominant trend? How many trades do you get per day? What is the symbol in IB?

If yes, how do they trade? Do they trade directionally? Are they always profitable?

Hi eusdaiki, In your earlier post, you mentioned always hitting the ask to buy and hitting the bid to sell, taking away liquidity but now you are saying you are buying on bid and selling on ask, so which is which?

Can you please explain how they churn out millions of contracts? How is it safer? Are the market makers considered "smart money"? How do they provide order flow???

Hi Mav, Thanks for earlier answer regarding gamma scalping. I have read somewhere where you posted that in the LONG RUN, one can probably earn a return of 15-20% per annum employing a short premium strategy (if you are competent and know what you're doing) but here your goal is 5% to 10%...

Hi Mav, If you can successfully gamma scalp, isn't it better to do it with futures as they have less slippage? Can a trader expect to overcome the slippage/spread of options over the long term over many transactions, as can be expected in gamma scalping? To successfully gamma scalp, it means...

Hi, How would risk management parameters employed by Interactive Brokers handle a large sudden spike in prices caused by errorneous orders or a sudden/crisis event during either normal trading hours and off hours? For e.g., ES spikes down 100-200 pts caused by a sudden news/event or an error...

Maybe the guy with 5000 hits is not yet consistently profitable? If number of posts means trading success, you bet I have at least a million hits by now. And where do you get the impression that people who are consistently profitable are not trading more contracts? And, a trader who is...

At current volatility, roughly how many pts or % equates to 1 sigma in SPX? How about in ER2? Thanks in advance.

When you guys talk about CTM and FOTM, what kind of % out of the money are we talking here? One guy's CTM could be another's FOTM and yet another's WFOTM! :confused:

:eek:

It's just a term used to describe bonds issued by government to mop up excess liquidity, in other words, "sterilize" the inflationary effects of excess yuan created when exporters of China earn US$ and wanted to exchange back into yuan. Without the issuance of such bonds, there will be too much...