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I think if you trade future products, you don't have to register as an investment advisor in your state.

Is the day trading rule applicable to future, or future options? IB said no.

According to my phone call with TOS, they will provide portfolio margin to everyone. There is no capital requirement, and it will be offered in April. I believe it is up to your brokers to decide if they will offer PM. Call your brokers and they will tell you their plans.

They said they will offer it to everyone without any conditions by April.

From what i learned, simplex is not a prop firm. That means, they don't offer haircut. It is a day-trading firm with commissions as low as 40 cents per contract. No license is required there. The commission rate was a public info that I found from ET and their website long time ago. I...

piccon, I am glad that you made good money this month again. I broke even this month with CTM ratioed diagonal and vertical. Basically I lost money with CTM ratioed diagonal, and made back most of them from verticals. I found it difficult to neuralize your delta with CTM, or ATM. The...

Rut settled at 815.99.

It is not today's settlement price. I believe it was yesterday's price.

RUT settlement is not out yet? Why does it take so long to calculate the settlement price? I thought it is very simple to have a program to compute it. :confused:

The same logic applies to mutual funds and hedge funds powered by thousands of Ph.D. If you think your logic is right, stay away from the market. Period!

Don, I didn't mean I trade unhedged position, I just wanted to know your haircut charge. It is very dangerous to say what is hedged, and what is not. Should we use statistical correlation as a means for perfect hedge? You might, but I don't. If I have my own way of hedging (my own...

Don, What is your haircut charge? For example, if I have 100K capital, and I hold positions (not hedged) of 800K. There should have no charge for the first 600K, and you will charge the remaining 200K. What is the rate for that 200K?

I used it as an adjustment strategy (not a core strategy) for my ratioed diagonal. If you recalled that I had a Feb 800/June 900 1:3 diagonal, i adjusted it by buying back Feb 800, and selling 2x number of 810 contracts.

Coach and Mav, Thanks for the explanation for the backspread. I wanted to know the market conditions that you opened and adjusted (or closed) it, and both of you offer a very clear explanation.

Mav, Thanks for the example. Credit or debit makes no real difference in option pricing. This one seems too directional in nature. The only good part is +ve gamma. It doesn't look good to traders like me who get used to time decay but I'll put the effort to understand why you think otherwise.

Which option and strike? How wide is the strike difference? [edit] Did you give a real quote here?

Can you show us an example of credit backspread?

A simple backspread requires a lot of margin under reg-T. I don't think it is a good strategy for retail traders (unless you trade future options). However, a backspread with long wing is a different story.

It makes sense. But guys like me would have done a lot of simulation before they join a prop firm. I will post the fact one month after I join the firm :D. I just wonder why successful option traders like RA, and others oppose the idea of joining prop. I like to hear opinions from both sides.

Thats why i said not getting this benefit in the "first several months". Just to give a realistic picture for those "unprofitable" traders. :D