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Not an expert, but it has something to do with betting...

CFDs are illegal in the US. I don't quite see how CFDs can be listed on an exchange, since they are OTC products by definition/design!?:confused:

The fundamental difference is that the index is not affected by earnings, CEO resignations, takovers, competitors and etc. You're less likely to get price gaps with an index. As the OP mentioned, it is just a matter of preference.

3. Slippage can be a significant part of trading even for a retail trader. Slippage is incured every time the fill price is different to your decision/expected price.

Actually, to keep it simple, long put+short call+long stock=zero, i.e. it's a flat position.

First of all, you're mixing up too many instruments. In your intial post you mentioned fixed income desk, then you mentioned Nasdaq, and now you're talking about index futures. As rosy mentioned, there's a significant difference between OTC and exchange markets. Continous means that the...

I think you should re-read the whole thread.

OptionVue is designed for options. I think most of your questions will be answered if you just visit their website.

1. That's correct, however this is not considered slippage since you got the price you wanted. 2. A limit order is at your price or better. However, an iron condor has 4 legs, which are generally filled on a single exchange (you can get it filled on different, but I'd say it's unlikely at the...

Several years.

Yes, adjusting means less business for you, but if the order flow is a one-way train then all market makers would adjust not just you. They would hedge by trading the derivatives (options and futures). The same way option market makers hedge with stocks and/or options/futures.

I agree with Maverick, 15K is way too much for the courses that don't really teach you a whole lot. By the way, I've never attended any courses, well, except for the ones at college (economics & finance major). That's where I learned the theory of options. The rest is experience, books and...

They hedge their exposure. A one-sided market is only a problem if you don't act on it. That is, if you are accumulating a position on one side then it is a sign that the price is out of whack so you would adjust the price so there's no more pressure. You can also hedge your position...

So, let's see what you have. You bot the stock at $78 and sold the call at $28.30. So your worst case risk is $49.30. In other words, you are risking $49.30 to make $0.70, which is 1.42%. Also, don't forget the cost of carry, which adds up to quite a bit given there's more than a year to expiry...

Hold on a sec. First you claim it to be an arb and now you're saying it's not!? You said it yourself in the intial post: "not fair value" is defined as ARB, unless you have some other definition for it!? My point was regarding no ARB, nothing else!

Commissions are not part of the slippage. A limit order doesn't have slippage cause you are either filled at your price or not filled at all. Here's another example. Let's say you have a stop order to sell an option at 1.00 (a stop order becomes a market order when hit, obviously using...

It is, yet you cannot just add up Vegas across different expirations. The front month IV usually drops more than the back month, so since he's short front month IV and long back month he can still make profit from the IV drop.

Why would this be out of line? If the market prices it this way then it should be this way. I doubt the market makers and all the institutions that trade VIX futures have just out of the goodness of their hearts decided to leave some free lunch for you.

http://en.wikipedia.org/wiki/Slippage

Check out the Books section of the ET website.