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I might misunderstood our conversation. My phone call with Andy seemed to imply that I cannot have overnight position higher than haircut even if I am willing to pay for the haircut interest.

Don, Most prop firms don't do it. I can see the value of joining your firm instead of others. Does your firm offer options, future like vtrader?

This is huge IMO. However it seems that a trader who just join your firm will not get this benefit in the first several months. Is it true?

Mav, The real practical benefit i can see by joining a prop firm is the cross margin in a haircut environment. Please educate me if you see other benefits.

Sorry, Mav. I am slow in understanding your number. By looking at the option quote, did you mean 37.5 the price of Jan 09 110 straddle? What do you mean by AAPL 100 times? (100 strikes or 100 contracts?) How come you use 200 in your cost calculation? Is 25 the min haircut for a long...

Mav, how do you get these numbers? Since most ETers use IB, I think it is better to illustrate your numbers with IB commission.

Only if a licensed trader works for a prop firm. My biggest concern with working for a prop firm is related to carry-over loss. Suppose I have 20K carry-over loss, and if I make 10K profit with K-1 from a prop firm, can I deduce my previous loss of 10K, and pay no tax on my K-1 profit? If...

FICA is just the social security and medicare tax, required for LLC profit but not for C-corp.

I don't agree with him every time, but sometimes I do agree. :D If I find out I am wrong in a particular issue, I'll admit. I think before I agree. Sometimes I think too much and too long. :mad: Hey. What do you expect from a newbie!

I didn't mean diagonal was bad. It is good as part of your strategy. I think capital allocation is the key to success.

If you set up a LLC, you have to pay FICA tax (almost the same as the corporate tax rate). Either way, the net income after tax is the same if you take out all the trading profit. However if you keep the profit in C-Corp, and keep compounding, you get the benefit similar to tax-deferred.

After spending quite some time with diagonal, I finally agree with RM that there is no edge in adjustment. Adjustment = close the existing position + open a new one. Adjustment saves money on slippage and commission if the conditions for closing an existing position and opening the new...

If the market moves higher, IV will drop. You then make money on delta but lose on IV. You need to have a good balance of delta, theta and vega management for trading diagonals.

Can anyone explain negative gamma scalping? An example will be helpful.

Can you open a retail account in fimat? I thought they provide service to institutional clients only.

So it is not the same as market maker margin!!!

With the new margin rule, is it true that a brokerage firm cannot charge you margin interest the way it is now? For example, I have 100K, and I buy stocks valued at 200K. Can they charge me interst based on the new rule? The brokerage firms might lose a lot of revenue if not. Time to...

When will IB provide portfolio-based margin? Are there any account requirements?

I made the comment based on this morning's fill. However, it is in general true for the past 2 months. Diagonals seems harder to get filled when compared to verticals.

Rut is getting harder to fill. I had Apr/Feb 860/810 opened at 0.05 debit, but it didn't get filled till the mid showed 0.25 credit. It was 30 cents from the mid. My Apr/Feb 740/780 put is not filled yet. It is so hard to get filled and we as spread traders are losing a considerable...