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  1. M

    How do Market Makers determine the Option Price in binary Situations?

    When I'm trading exotic currencies I'm specifically looking for NDF's or some sort of big boy capital market restrictions in spot..so KRW definitely my thing. MXN not so much X0 Argentinian Futures Exchange looks nice, I'm going to look into it. Although I don't have any contacts there and...
  2. M

    How do Market Makers determine the Option Price in binary Situations?

    I think the reason for our misunderstanding is that you asume that I'm doing things like this the first time...
  3. M

    How do Market Makers determine the Option Price in binary Situations?

    No. If you told me you did, I would try to build one for myself. What would be in for you to proof your work? Right, nothing but a bunch of copy cats. @jtrader33 showed you that it is not impossible to arb as a retailer. Oanda has been gamed a long time ago by an ET user, too. EUR/USD forwards...
  4. M

    How do Market Makers determine the Option Price in binary Situations?

    Ok. So I'm not quite sure if you really don't understand it from an intellectual point of view or if you just want to split hairs here in order to start and win a pissing contest. Just because YOU cannot do it, does not mean nobody can't. There is a horde of retail traders especially in...
  5. M

    How do Market Makers determine the Option Price in binary Situations?

    What I try to explain is the fact that markets are not moved by math, models, or no arb criteria. It's driven by inventory constraints of all participants. This leads to severe mispricings that can be visible for everyone and really persistent. If you know how to price assets you have a ton of...
  6. M

    How do Market Makers determine the Option Price in binary Situations?

    Dude pls...what does "let's say" imply to you? I wanted to make point so I had to overstate...I think that was clear to see for anyone. If I used a more realistic example like low float pump&dumps, noone would have gotten it
  7. M

    How do Market Makers determine the Option Price in binary Situations?

    I want to add one last thing here, which should spark up a lightbulb above some guys heads: The market price is a function of all participants inventory NOT of no-arbitrage criteria or some mathematical function. The bigger a market participant, the more influence his inventory has on the price...
  8. M

    How do Market Makers determine the Option Price in binary Situations?

    Here I would say: it depends. For example, look at microcap stocks like pink sheets or the canadian miners. A market maker there has so called mandates. Since there isn't really a correlated asset for these stocks where he can hedge his inventory, the MM receives a fixed sum between 50k and...
  9. M

    How do Market Makers determine the Option Price in binary Situations?

    Designated MMs have to fulfill their quoting obligations, so they have to post orders. When they get hit, its a fill. No auctioning
  10. M

    How do Market Makers determine the Option Price in binary Situations?

    No. You need to understand that MM's do not have unlimited money. Therefore they cannot just quote the "right" price over and over when they get hit. Once they are out of margin, what are they gonna do? As a MM you want do put your quotes where there is two sided flow. This basically means you...
  11. M

    How do Market Makers determine the Option Price in binary Situations?

    Pricing is 10% math and 90% inventory control. Once the MM gets hit by an order, he hedges and shifts his quotes. One sided flow is usually hedged by positions that are +theta so that the only job is just hanging on to your inventory without blowing up. MM position is usually short ATM and long...
  12. M

    Taleb vs Assness on tail hedging and risk parity

    this guy knows the game
  13. M

    Taleb vs Assness on tail hedging and risk parity

    No, people don't misunderstand. People want to make money on a consistent basis. They run businesses, they need to pay rent and salaries and their mortages. Name a business that's like " Well, I have no idea when sales is coming and I don't know how much it's gonna be, but I somehow calculated...
  14. M

    Rowdy Chicago trading pits face risky reopen, extinction threat

    1. ) condors or strips out of packs and bundles. Eurodollar packs already have four legs 2. ) "RVassets is a London based FinTech that focuses on algorithms for the pricing & execution of listed options"
  15. M

    Anyone use CME Direct?

    No, that is not correct. CME Direct enables you to access lit markets (Globex) and it's OTC clearing facility (Clearport) with one software. No retail trader will ever use Clearport since no institute will ever blocktrade with a retailer. You don't need it. Continue using Sierra Chart
  16. M

    Possible for Forex futures price to go negative like oil futures?

    ARE YOU GUYS FUCKING KIDDING ME??? FX trades in ratios....how would ratios go negative when numerator and denominator are both positive? Sometimes, guys, you should ask yourself if another hobby wasn't better for you
  17. M

    Possible for Forex futures price to go negative like oil futures?

    math teachers please calm down...he just had a moment
  18. M

    Anyone use CME Direct?

    Connects to clearport and globex. It's for prosfessionals, not the average Joe EMini gambler.
  19. M

    Why didn't my trade print on the chart? Screenshot

    Your trade did not print in time because it did not go to market. It got matched internally at some of the market makers. https://www.tdameritrade.com/retail-en_us/resources/pdf/AMTD2054.pdf This is were your orders go to. If you really think TDA sends your orders to an exchange you are...
  20. M

    Small research team for trading an exotic option product

    Alright @Aquarians, calm down, dude :) First of all: How liquid is the product? Is it listed, is it traded OTC, which jurisdiction? Is there a minimum capital requirement to trade it and do you need an ISDA to trade it? How much is the data and where do you get it from? OR do you mean YOU...
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