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What's your order size?

Haha.. good point. :)

Huios, What is the "filter" you are referring to? Thanks

What is your website?

Right. That's why I say only enter the trade if you have an edge -- if not, you're just gambling.

I think Bloomberg's down to about $1300/month now. That's before market data fees or T1 line. Yes, it's very very expensive. However, it is an amazing tool. If you're just looking for simple quotes or whatnot, there are many cheaper choices (pretty much anyone). But if you want equity...

Last I heard it's being beta tested, and is due out Real Soon Now.

Yeah, maybe a simler rule... hmm.. 1. Only initiate a trade when you have an edge. 2. Reduce risk whenever possible. 3. If any doubt, see rules #1 and #2. Those work for me.

For those who asked -- this was the text to which I was referring: Def, I'm not trying to start the flow of bullshit. My read: ** 10.A., above: "We trade stuff too, in competition with you." I don't have any beef with this. ** 10.B.: This might just mean that we're going...

So is it just me, or does the new IB customer agreement say that it's fine for them to give our orders and order flow information to use in proprietary trading against us?

Rbane, What sorts of options spreads do you do? Or did I miss it in an earlier post?

Bone, An interesting thought. People do pairs trades with one stock against another all the time. But as perhaps you mentioned, you really need a lot of capital to make it worthwhile, and do be able to spread your risk across dozens of pairs. You mention spreading one or more stocks...

Darren, I think you're doing basically the right things. Leaning on a bid/offer of the 2nd stock, and doing the "hard' side first is definately the right thing to do. I think you give up a lot by doing this on only an intraday way. I think you really need to be able to keep the positions...

I rambled on and forgot the reason I hit reply to begin with. Don't forget that as with any trading, there is execution risk, which is not always insignificant, particularly if you're trying to arb a basket of stocks against an index.

Index arb is one of the purest of arbitrages and is low risk, low return, high volume business. As the Reverre book points out, to be competitive, you really need to be able to borrow/lend at the risk-free rate and have gobs of capital at your disposal. Still, there may be some chances for a...

Lescor, Okay, I was wondering if there was another one. I've got the book you refer to, and I think it's a good one. However, I thought the part on stat arb, and on pairs trading in particular was relatively incomplete, compared to the rest of the book. Still, it is definately a good book...

Corey, To which Reverre book are you referring? Thanks!

Yeah, it's really too bad. I knew a guy who had a good job ($90K + bonus of about $20K, living in the midwest) whose wife also worked. When he lost his job, they only had enough savings to live two weeks beyond the last paycheck. They ended up having to sell a car and their house almost...

Oh -- THAT's where you guys were getting these "40 point loss" and $700 loss and such... I guess I'm so used to looking at those IB statements that it didn't occur to me. They do it that way because that's how futures are settled each day -- marked to market for each traded.

Because 100K is a lot if you are working at Wendy's and making $30,000 per year. But, then comes "The American Dream". Get a nice house in the suburbs, married, kids, an SUV, a minivan, a boat, etc... it's a lifestyle that takes quite a bit of cash to maintain. If you make, on average...