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  1. M

    box spreads

    No, it's not possible to make money with boxes as they are arbitrage positions and as a retail trader you won't be able to do that - too slow and the costs are too high. With a box spread you are essentially lending to or borrowing money from the market.
  2. M

    Options Question

    In general, options are not designed for daytrading due to wider bid/ask spreads and low liquidity. However, penny spreads are starting to make it viable.
  3. M

    Looks like the rogue trader was trading DAX futures

    DAX futures weren't the only ones with massive volume, DJ Eurostoxx 50 futures had massive volume as well.
  4. M

    It's hard to make real money with options during Fed cuts?

    June is way too far out for a short term trade. It's just not responsive enough.
  5. M

    Anyone trading CFD here?

    Actually, they internalize the order flow all the time, not just sometimes. It's standard practice, why wouldn't it be!? The cost of hedging every customer trade with the outside world would be prohibitive and unnecessary. I don't think this is a problem. The problem is that they are on the...
  6. M

    Anyone trading CFD here?

    Actually, even if it's an overseas company they are still prohibited! The only problem with CFDs is that it is mainly an OTC market (I say mainly cause apparently the Aussie stock exchange is planning on listing them) so you always trade against the dealer, which is not a good thing in general.
  7. M

    IB question

    Maybe the demo platform doesn't have the real data feed!? Just a guess. Beside the fact that Yahoo is delayed.
  8. M

    vix option negative premium

    I don't know, but my guess would be they do. It's beside the point though. VIX options are priced off VIX futures hence you cannot use the VIX index to determine the intrinsic value of a VIX option. * Mods this clearly belongs in the Options forum, mind moving it there?
  9. M

    vix option negative premium

    That's because options are not priced off the VIX, but VIX futures.
  10. M

    Why are C calls so cheap?

    Do you really think that with the single volatility value that you put in or is there as default you are gonna get theoretical values that the market is pricing in!?
  11. M

    my first day paper trading as scalper, TOS

    Near the bottom of the order entry section of the screen it says "Advanced Order" and has a drop down menu next to it. You can choose "1st triggers..." Check tos website or "Help" tab for exact definitions, but basically you can choose for the first order to trigger a sequence of orders, all...
  12. M

    New to Options

    Time value is the function of volatility (and time to expiration) so the two are really the same thing. You are probably referring to the time decay not time value. There's a difference - time value is eroded by time decay.
  13. M

    New to Options

    LOL, I love this one! A student must write a 1-page...:D:D:D You can find all the recommended books in the books section of this site as well as this thread. Btw, charting an option wouldn't do you much good. Options derive their value from the underlying so it is the price of the...
  14. M

    How to hedge theta?

    You can't reduce theta without paying for it somewhere else. There's always a trade off somewhere.
  15. M

    How to hedge theta?

    There's no "other" way to profit from the long call than the obvious one, if you know what I mean. OK, it doesn't matter whether it's stock, commodity, index or fx. Long call + short put = long synthetic underlying, in your case whatever currency that is. The underlying has a delta of 1...
  16. M

    How to hedge theta?

    Long call + short put = synthetic long stock, which has 100 deltas and zero theta/gamma/vega. Then you would short, say, 45 shares to hedge the delta of the put and bring your total position to long 55 shares. Sounds like an amazing strategy...your broker will love this!
  17. M

    How to hedge theta?

    Depends on your position. If you have a long call, for instance, then you can sell a higher strike call to convert into a vertical and partially hedge theta. As always, this has a trade off though.
  18. M

    How LOW was the futures before the rate cut?

    ES 1255.50 ER 637.50 NQ 1744.50 YM 11456 It would've been lower if it weren't for circuit breakers.
  19. M

    ES 1255.50 support?

    Is it really that hard to find!? http://www.cme.com/trading/files/EquityIndexPriceLimitGuide.pdf
  20. M

    ES 1255.50 support?

    Actually, no, overnight they can't go down more than 70 points, period. Check out CME's website!
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