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I'm surprised no one is talking about the arbitrage opportunities between the future and the stock. This is the main reason I'm looking forward to them. But without tight spreads, it won't be worth it.

I believe that on the Nasdaq, it only has to be an up-bid, not an uptick. So if the last trade was a downtick, but someone raised the best bid, you could sell to it.

Well it sounds like you've got your mind made up already, so I'll just end the discussion right here. I'm satisfied with the way things are handled there, and I think I've made my points clearly. I'm not a company representative and if you need more detailed answers, I guess you'll have to get...

Sterling has a management version of it's software that allows the firm to monitor everyone at once. The guy who will call you is named Vince. He's locked down in a room all day staring at a bank of eight 21" monitors which shows all open positions firm-wide. He doesn't even come out for...

Well I'll have to disagree on both points. First of all, if you are putting your account or the firm at risk with a position, you WILL receive a phone call. I know the guy that makes the call and know traders who have received them. I guess if things were extreme, they might have to take...

Did you know that your Sterling software has a feature that allows the trader to put a limit on his maximum order size? You decide what this number should be. I have mine set to 3000 shares, but it's mostly just to prevent me from accidentally sending an order with one to many zeros or...

That's a bold statement. What information are you basing this on? Have you seen the risk management software? Have you been in the room used to monitor traders? I spent a few months trading in the company's head office and have. Every single position is monitored in real time by several...

Before entering a trade, I always determine at what price level in the stock will I say I am wrong and get out. I also have to keep in mind the nature of the stock and how large my slippage is likely to be. The next thing I decide is how much I am willing to lose, in a dollar amount. Then I...

Here's an example using a popular pair trade, Fanny May and Freddy Mac. I track the ratio of fnm divided by fre, which lately has been averaging 1.222. On June 4th, the ratio got to 1.235, which was a 2.4 deviation from the 30 period average (60 minute bars). I shorted fnm at 78.43 and went...

You could go long stocks in the strongest sectors and short ones in the weakest sectors and let the probability of trend continuation work in your favour. Lately you'd be carrying hmo's homebuilders and restaurants long and chips, telecom and utilities short. And you'd be cleaning up. You...

Yes, you are right. I didn't think of that while I was going through my canceled orders afterwards. There were probably several shorts that I wouldn't have been filled on. But I had 5 short positions that were gapping up and the guy on the squawk box was going mental calling higher handles...

..for me at least and the way I calculate my prices. Coming in to the day, I was definitely looking for a bounce from the get go, and was hoping to have a bunch of longs from openings that I could hold for a nice ride. But with the market slated to open down roughly 1.5%, and my envelope...

Since you are just learning about daytrading, I would suggest you start by reading lots of the old threads here on elite. Most of your questions have probably already been answered. A recent thread had a lengthy discussion about home vs. office trading.

I spend an incredibly amount of time working on this strategy. I am always tweaking my spreadsheet and reviewing all my trades, trying to look at it from as many angles as possible. I'm at the point now where I think I could make a living off just opening orders. Of course the environment can...

Deeman, Sounds like we're on the same page and trading similarly, but I hold overnights regularly. I agree 100% that the most profitable way to trade pairs is to make most of your money by only putting on one side. I've had some nice wins by doing this, but when I'm one sided, my concern is...

Index arbitrage is basically risk free, your only risk is that settlement doesn't take place as it should, which is miniscule. Tough to do as an individual trader though. This is why I am anxious for ssf's to start trading. If you can lock in a spread there, and it's more than your cost of...

The book I was refering to is The Complete Arbitrage Deskbook by Stephanne Reverre. It's heavy on math and covers a lot of situations that are only practical for institutional trading. There was an article in an issue of stocks and commodities magazine last spring dealing with pair trading...

There is a smattering of info on elite about arbitrage trading, but not much. Maybe we could have a forum for people who are interested in this strategy to discuss their ideas. I posted a reply to a question in this thread ...

I'm doing some pair trading now based on the same article (and Reverre's book). I've built a pretty in depth excel spreadsheet that I feed live data using qlink. It produces charts on 5, 15, 60 minute and daily time frames. I chart the ratio, the dollar spread and the standard deviation of...

BZH, which by the way is traded by the IBM specialist. So he neglects the stock while he's busy screwing people in IBM, then comes back to BZH and screws you twice as hard to make up for it.