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Right. But I'm roughly interested in the amount required, if I have to put up a deposit of $16,000 then +/- $20 don't make any difference. Because there's the issue on how much money I make. Say I make a profit of $500. If I made them on a deposit of =~ $1000, then I made a 50% return! (Of...

Say I'm shorting 100 shares of SPY ETF, and I intend to keep them for 30 days, SPY is now trading at $337 / share. If I were to buy them, I'd have to pay $33,700 (will ask a question on that later). But instead I'm shorting them, meaning I borrow them from the broker. In this case the broker...

Say the stock is $100 and I enter a CFD to buy the stock. If stock goes to $150 I win $50, but also lose $50 if I shorted it. But what prevents the CFD definition to say "limit the contract range to +/- $10"? So in the example above the win/loss would be $10.

There's no limit how much a stock can go up, but can't go lower than zero for down. So it's natural for puts to value less. Even on indexes, let alone single stocks, let alone penny stocks which trade today at $2 and tomorrow might be $40.

I understand that he's NOT referring to current options, so no miracle pricing formula for the established framework (ex: European options on index or American options on stock). Instead of the likes of Captain Caveman , came up with some new derivative (option? variance swap? credit default...

There are dozens of types of options. There are unusual to very strange derivatives traded in the OTC market. Any quant in a bank can flex a bit his mental muscles and come up with a novel derivative. The problem is not coming up with new stuff, problem is selling it. There's a ton of...

There are a lot of sellers of (options) trading strategies, some cheap some more expensive. Anyone bought such a thing? Overall they DO sell, so there are people who buy them. I guess from a beginner point of view it's better to trade using a system than randomly. Obviously no such system for...

No such thing.

It's all about Sharpe. If you make 1% per year in a bank account, that has Sharpe ratio = infinity because there's no volatility involved. So options for income is about higher yield than a bank account but lower volatility than plain holding the underlier. For instance since 2000 (the last 20...

So "indices" is $100 / month. It's not clear that I can resell derived data from those indices or it's just for my personal use.

Question, in case someone has some experience on this. Suppose I would want to create a web service / mobile app which would offer trade advice (indicators) based on a subscription fee. The indicators would be calculated using realtime and / or historical market data, both stocks and options...

Just so you know: I've been researching this crap for over 10 years. You just can't pull this sort of thing out of a hat. Over time I went from not having a clue to figuring out my strategies / models lose money, to making them lose less to barely profitable to not long ago coming up with a...

Do they have to know I posted here? ;) Like I've my share of drunken posts that I'm not proud of. The problem with internet forums is that shit that normally flies and gets forgotten now gets archived and used against you. But I still think money trumps everything.

Well me too, actually it's in Karen's context that I first encountered the term. And gotta say I like how it sounds.

Wish I could offer guarantees but no edge is guaranteed. Even in HFT there's risk: it usually involves two legs, sell one side and buy the other. Tests in live environment get calibrated to the expected delay between the legs and seem to work fine ... but you lunch to product and works for a...

Suppose you fall on some strategy with controlled risk and high Sharpe (>3 .. 5), which you devised based on a combination of fundamentals, market observation and experimentation. But it needs more money than you have .. say you would invest some $5k-$10k in it but to trade the required...

Should have specified but I admit I deliberately left it ambiguous. It's a probability edge in predicting a change in implied volatility. Like VolSkewTrader said, it's much easier to predict direction of implied volatility. Volatility seems to be decreasing some 55% of the time (I think this...

Since we're at it, just got some 7% edge in predicting an up move with 99.98% confidence, still no idea how to exploit this or even if it can be done.

They have their own language, MQL.

Yes, and there's a lot of brokers supporting Metatrader.