Search results

The point is you send the order earlier since you get the quote earlier.

What will the argument be after we have a major '87 style event bringing low vol to an end (whether its tomorrow or in 15 years, it will happen again)? I completely agree with most of his arguments, that doesn't mean I agree with his recommendations. Given market conditions over the past 5...

No, that's precisely not the case. If they are priced correctly (which they usually are), there are no opportunities.

It's quite likely quotes aren't being hit because there is no arb opportunity. http://finance.yahoo.com/q/bc?s=SSO&t=6m&l=on&z=m&q=l&c=%5ESPX Note the lack of the 200% relationship

Most, if not all, of those funds use derivatives as well. I highly doubt there are any major arb opportunities that aren't gone within seconds.

lol I'd love to hear why you loaded up shorts for that number like that

The odds of the event are priced in, it will still move (regardless of the outcome) unless the odds of the event are 100% - which I'd say they're not.

Orders sitting in the book are no longer charged specialist fees at NYS, if I'm not mistaken. This change was slipped in when NYS raised their fees

Dude, when you see GDP numbers you are seeing them in Real dollars. It is calculated by using prices from a base year, not by using an arbitrary measure of inflation such as CPI (which wouldn't apply as that measures inflation in consumer goods and services, rather than all goods and services...

I ignored M3 as most economists agree that it has become a poor measure of the money supply. My math was fine. http://www.federalreserve.gov/releases/h6/Current/ Seasonally adjusted M2 from jan 2006 to jan 2007 shows 5.5% growth. With GDP growth at 2.5% this puts inflation at 3%.

Have you ever taken a macro-economics class? If you recall, in the long run MV=PY holds. GDP growth is about 2.5%, and money supply growth (not even M3, which is not as relevant anymore) is no where near 10% a year. More like 6%, if that. This puts price level growth at 6-2.5 = 3.5%, not too...

Bestfriend did stretch the truth a little Last I checked his jag was out of service after a little incident with a lot of water And his dog is a little pussy

Creation and redemption of ETF units keeps their relationship in-tact. The ETF's value is derived from a portfolio of the underlying stocks. For your question, the fact that these two events happened at the same time probably isn't relevant. We can split them up, see how what their...

The options market, taken as a whole, is indeed zero-sum. I don't see this as a debate. The definition of zero-sum, according to wikipedia: The first stipulation that must be made is that the market is looked at independent from other markets and transactions. While one may be trading...

Correct me if I'm wrong, but ARCA will be forced to check top of the book at all other market centers (even if it's a limit order sent to them, assuming its not marked ISO) before sweeping it down on it's own book.

Wrong. Only the top of the book is protected.

According to hybridtalk, phase III securities are already enabled for trade through. That is, orders are already being routed away for the amount shown at the top of the book -- I've noticed this personally when I go to take on NYS with a single order, for example, and I get some instant NYS...

Trade through will only protect the top of the book, correct me if I'm wrong. In other words, it will fill the bbo on the ECN's and then sweep NYSE leaving the ECN levels in between still alive.

In the common sense of term, sweeps are instant. You won't see them start or end, you'll see it on the tape and if you had an order you will get filled instantly.

How many messages are you sending/receiving per day? As far as I know they have a strict limit of something like 50,000 Their infrastructure is excellent, it is fast, but I have been told that they're not ready to allow traders to push it with very high frequency applications