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In general, cash.

I do not view margin as a cost. Margin is margin. Lower margin is just a reflection of a lower relative volty. The man who you said trades with cash and no leverage, is in my view a very smart man and someone I would want to know more about (compared to the other millionaires who trade with high...

Given the high leverage, who would be on the hook for the margin deficit if the worst happens?

Don't prop firms in general use portfolio margin? If so, I do not understand the meaning of "firm's capital". I find the spread thing extremely risky, because of worse case hits. Imagine the stock you long goes to zero, and the one you short goes to the moon overnight. Who pays for margin...

+1.

You may want to reread my 2 posts. If one makes an order at a new high it is absolutely certain that if the order is filled the other side is NOT a losing long. That was my point. No other information is needed.

What is the MAX then? Assuming that you in fact know, is your assumption that the majority knows based just on your beliefs or is there a proof for it? Why don't they get paid for shorting a put (in addition to the upside), or protect themselves against that put? If it is indeed part of the...

Are you saying that there could be some who know inside-mates and top notch brokers? If yes, who pays them? It would worry me if I were to know they exist. Would it worry you?

Yes, and I gave you the example (I explain why it is below). Before I do, I want you to know that I am not against your views. I like to think with the views and opposite the views to hopefully make a less complete analysis. Back to your point. The new highs automatically exclude any loser...

How much does he charge you? How much would you pay if I were to start a service like that?

The other way to look at it is to study the mathematics of trading that study the things you are not yet aware of, or things you are aware of, but now react to only in a common sense way, because psychology deals with reactions to things we are not consciously aware of, or just became aware of...

When you buy at a new high, do you buy from losers? :)

An investor gets a free put at strike zero by law. Could a leveraged long side trader writes a put for free without knowing it? Example: if one buys a stock at 100 on say 5:1 margin, one may implicitly writes a put at strike 80, but receives no premium in return. Is this correct? If you...

Thanks for that quote from pTJ! But he should also have added connection to capital.

Since you are a pure price action, how sure are you? Do you want an example?

Are you saying that no one has access to that information?

1. Are there participants who know that information? 2. I like your second point as well. Could you share some examples, say based on time of day or other?

I hope you are being sarcastic.

Thanks. Note that I am not looking for why he did provide liquidity, but what was his situation before the trade.

One unique aspect of trading is that one does not see the other side of his trade (unlike in real world where one could generally see the person one trades with). If one were to know whether the other side is a long closing a winning, flat or a losing trade (3 cases here), and in the case of...