Search results

If you are using them as a cheaper route to play the underlying, the main thing you need to remember is the leverage goes both ways. If you are looking for a basic understanding, try "Options as a Strategic Investment".

In order for the local to make money from the order flow, the broker is bringing in the order, both making money, moot point. Using the services of an executing broker, at an exchange you do not have a membership at has been going on forever. You don't need to clear and execute the same firm...

Cutting the spread to $.01, would hurt not help, most professional traders, and not just MM, we are off floor traders. The switch to decimals cost us about 20% of our revenue last year. The increased competition might tighten the spreads from their average of 4 or 5 ticks, which would help...

That rule has nothing to do with what you are suggesting. That is "small lot baiting"; i.e. you offer a one lot @ X, on a strike with a large spread, they post you collapsing the spread to one tick, you hit that for a ten lot, they fill, reverse on the exit. Like taking candy from a baby, very...

Yes.

Def, Is IB's system still rejecting more than one order a second? Same strike or same series?

freehouse, The reason there is no real linkage is because the exchanges really don't want it. Your assumption of being a member at all 5 exchanges causing the high level of commissions is not accurate. There are a lot of firms that only hold one membership. In addition there are locals...

Terra Nova.

There are definitely issues, we are regularly accused of it, even though we have shown a number of our executing brokers our operation. The faster you are the more they complain. We had the AMEX fade us in one instance 10+ times in a natural market and then threaten to file a complaint about...

They used to use the same arguments about stocks and futures, now imagine where the price can go.

Def, We don't use IB anymore, so I can not check this myself, but I remember some posts about options requiring a confirm. If I am wrong then IB must be violating the manual intervention rule(s) in the option markets.

No. Put in more memory.

Jean Michael, Are you using the third chart as a trailing profit stop for you exit?

Jean Michael, What do you use the Parabolic for? How do you calculate your stops in the last chart? What options have you had this work on? We have a similiar system that works on equities and futures but scratches on options.

Getting what you see will be nice.

I think if the BOX honors all their quotes, regardless of the posted quotes on the other exchanges or the whether it is a retail account or a B/D, they will end up with so much market share that the traditional exchanges will be forced to trade on their posted quotes in order to survive. One...

All of them, all for different reasons. We leg into everything.

Just21, If that question was directed to me, 10 to 50 lots. We get faded more than we get filled.

Freehouse, We call in a number of fades a day, puts them through the paces, makes me feel better, net result is it costs us a little money.

The problem with "disputing" the "no fill" is that you have to leave the order live, and if they rule against you the slippage is very ugly. The time it takes to get a ruling is usually about an hour; if it moves against you, they will tell you the trade stands, if it moves with you, "fast...