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The question is about how the account works mechanically and what can or can't be done with the "extra money" (earning interest and/or offsetting interest on other long positions). Which broker are you with and do you know how they implement this?

I actually didn't conceptualize it as two separate questions, so thanks for explaining it like that. I'm assuming your answers are correct for Wedbush since that's Lightspeed's clearing firm, right? If you are correct that long/short options dollar offsets are standard everywhere including IB...

I understand, but TheDawn seems to be saying (if I understood him correctly) that IB does it differently. Is that possible or do all brokers have to implement this the same way?

So with IB, short and long option positions don't offset eachother, and my example scenario above would result in margin interest being charged on 2MM net debit?

Hi Robert, thanks so much for this reply! So much good info. Based on the bolded part, long options and short options always offset eachother, correct? For example, suppose I have the following position: 1MM cash 2MM short options 3MM long options then I should pay 0 margin interest right?

Having trouble finding this online. I understand that in the case of equities margin accounts, short sale proceeds do not count as cash in hand. Instead they are held in a segregated account and the interest that cash earns is typically not passed on to the client, or if it passed on then the...

What is meant by "Tier SM"? Did you make up that term yourself?

The issue isn't whether you are better off today choosing a zero commission broker who sells flow, or a commission broker who doesn't. The issue is, would you be better off in the future if PFOF were replaced with a structure that creates true competition to fill retail orders. Simple economic...

The 40 trades per day thing makes little sense. If you trade a lot then you don't deserve to get good prices anymore? huh? The other issue is, what kind of barriers to entry will there be to become a counterparty in the auctions. Ideally anyone should be able to participate. If it's just the...

Pretty sure you can ignore IB's description, these tend to be outdated, incomplete and/or inaccurate. You should be able to cancel on ARCA until 15:59 as stated on the nyse.com link. If in doubt just test it out with a 1 share order.

Too bad this tool can't completely automate the 2FA login

While this could work, it probably isn't a good way to find a strategy. Any random nonsense strategy is likely to have a good backtest on at least some assets just by chance, and just because it was good on those doesn't tell you much of anything about future performance. The good news about...

This kind of trading is extremely tricky to backtest accurately. You did not specify how you simulate fills but the claimed returns are so large I would tend to think your assumptions are probably way too optimistic. Orderbook data was not mentioned, but if you are using limits then queue...

Try the ignore user function, it works great for cases like this.

Depends on definitions. Some people define edge as anything that gives you a competitive advantage in the market. In this case, discipline is an edge. Others would say that edge refers specifically to informational advantage. In this view, it is your trading system that contains the edge...

I'm a writer, what is the optimal words for a document? Is 100 words enough?

I suppose it's only logical that "people who can't code" largely overlaps with "people who can't spell"

Why don't you backtest it and find out?

Thanks for your reply. Will it be possible to select / download ONLY certain types of messages and not pay for the other types? In historical? in real time? Regarding RAW data: At least for historical, RAW packets still compress very well with a big enough block size and a decent codec. If raw...

Will you support selective download of certain data elements from larger feeds? For example, auction trades and imbalances. Will you support raw (non normalized) data?