Search results

Just in case anyone else has had this problem. I woke up checked my account and all was fine. a few minutes later received an email telling me I was down A LOT. Basically impossible amounts. IB says it's a technical problem there end in showing correct portfolio value. Does not impact margin...

for a +1 point move your contract value changes by -0.388 x 50 given the current underlying future price and the option's implied volatility and time to expiry etc.

And another: https://fundseeder.com/trading_account/3322.

How about this for a fundseeder equity curve: https://fundseeder.com/trading_account/2310. :vomit:

I wasn't talking about offshore. I meant someone with whatever right to live somewhere can also potentially save tax by incorporating in the same location. It's entirely legitimate and professional thing to do.

the question is complicated by your own aims: do you want to make AND spend a lot of money or do you want to make the money and keep as much of it as possible to grow your wealth? if it's the former you need a low personal tax rate; if it's the latter then maybe you can consider incorporating...

No-one knows what will happen in future so any conjectures about how to adjust are not really meaningful. Maybe a better way to approach it is to think whether you believe this trade still reflects the premise of why you put it on. If the spot/vols have moved much more than you expected you...

Funnily enough the optionworkshop latest release includes polynomial fitting (see https://optionworkshop.net/blog/2018/02/19/option-workshop-18-2-1). No connection to these guys. Did test-drive there software a while back though.

If you look at the wikipedia article on this you can see that you can re-arrange the formula to get from the value of a put to that of a call with the same strike/expiry (and vice versa).

@truetype says it more succinctly than me, but this is what I was writing... 1) just a standard polynomial of the order of your preference (ivolatility paper does this). Sometimes piece-wise so that the polynomial is used out to a certain point and the wings are handled differently. That's...

Fair point. You're just more in a grey area at the very least and subject to the whims of tax enforcement. If you get away with it fine, I just wouldn't like the threat court proceedings and of paying X years back tax hanging over me. It's certainly nothing to boast about (yay I get to live in a...

I think that if you trade professionally via spread-betting HMRC will not allow you to do so tax-free if it's your main source of income. Assuming they find out. Even if you do it limits your ability to get tax relief on pension contributions.

The BBC case was an IR35 issue (specific tax regulations to deal with cases where you are paid as if you are an independent contractor with all the rights to substitute, choose hours and make decisions over how you work but actually looking at what you actually do you are more like an employee)...

Most brokers and in general most option trading software will try to fit a curve through the implied vol points at each maturity and use the fitted point for calculations. These curves can sometimes have parameters to try to fix the problem of deep OTM values. (You should ignore all ITM vols btw...

Index futures are instruments whose payoff should be equal to that of a trader who buys all the stocks in the index at their index weights with borrowed money at the same time and holds them until the expiry of the future collecting dividends along the way. That's it. The future is higher than...

By off-exchange I mean the over the counter market (OTCs). I think the big banks still dominate this arena in terms of market making but I don't have figures. AFAIK Saxo is the only place retail traders can access this market but I might be wrong.

It's probably mainly because, like fx spot, fx option trading largely takes place away from exchanges. After that, for the majors at least, CME fx futures options are pretty liquid and reasonably well traded. So for the venue you describe is like the 3 tier of an already heavily supplied market.

This was insanely lucky!

why wouldn't you exit on the biggest spike of all time in the VIX? "yeah I held with VIX at 50 because I wanted 80 in the next few weeks"? At least reconfigure your hedge if it is one, no?

That would give a strongly positive skew which would increase your FS score. If you look at the definition of sample kurtosis on the wikipedia page the powers used are 4 and 2. So kurtosis is a measure of the "symmetric" fatness around the mean (ie the value of kurtosis increases for negative...