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I had inquired about this one before for one of my clients. My information might be dated or incomplete. I would call the CME to confirm. I believe you can make two sided markets without registering as a MM unless your are sending 20,000 messages per day.

It would be more fair to compare ES options vs SPX options. You have to trade 2X ES options to duplicate SPX options. Don't bother comparing ES margin vs SPX margin for a similar position (You need a PM account to compare, not Reg-T). You have to compare the house rules of the FCM vs the house...

Account size is very important. It provides access to an institutional broker, more leverage in a PM account, sizing options for your trading and more depth to your portfolio. The track record from a large account is also more useful in raising money.

I'm not familiar with that. What would be an example of a Broker Dealer, that is a prop firm, that offers customer account in the same BD? Sounds like a regulatory nightmare.

Yes, she knew what I did for a living and I brought her down to the American Stock Exchange floor a number of times. I also knew it did not fit her personality. To me, a career in trading requires a personality that thrives in chaos and uncertainty. She prefers structure and other challenges. I...

As a teenage, I did not guide her at all. As she approached college, it was time to take a path. She switched on her own from science to business. Once she choose business, I help guide her toward success. I don't look at the time at a University as just a good education, but also putting a...

How was I controlling? I let her choose her path 100%. She never asked to learn trading so I never tried to teach her.

I decided not to teach my daughter how to trade. She is now 28 YO and doing well, but she works in the industry for a large bank. I'm happy she is not trading. It's not for everyone. If I had a young kid today, I would have them focus on programming and lean toward a career in cyber security...

How does a prop firm provide similar service to a retail broker? Apples and Oranges.

You are looking at notional and you should be looking at RT breakeven. I'm also referring to Eurex clearing fees not commissions. If the mini is 1/10th the future, and there are not lower clearing and commissions, you are paying 10X fees to trade.Good for the broker and the exchange but not you.

I think it's unlikely that an automated system like that would be "dumb" and not have it's own vol skew and fair value. As a customer, as long as you are putting yourself at the risk of the market, I'm not aware of any violation. Let's call that IMO.

Do they charge a reduced clearing rate? If they don't, no one will trade these things except very small retail accounts that maybe should not be trading futures anyway.

Try contacting Silexx OEMS and ask about their API. It might offer most of what you need. To go to the next level, you need a raw OPRA feed which is very expensive and will require a lot of programming. http://www.silexx.com/ The API with the GUI is around $600/month.

That might not work well as cash settled indexes are priced off the future not the cash. Pick a stock that has no dividend and is not hard to borrow.

The excess gains you would have had if you did not sell the calls, are lost forever.

Do you what you want to do until expiration. At expiration they settle for the index value. It is only an issue if it was a hedge. Your hedge is gone at settlement.

You are not able to find the B/S or a binomial option formula online? The last time I tried to do that was in 1985. I used basic programming and B/S to print out my sheets each morning. Now i feel old!

I agree. If I were starting out in the business right now and had limited capital to trade, I would focus on trading futures. You don't need the prop firm or any regulatory licence and still get the 60/40 tax treatment.

If that is what you need it for, no it can't be used that way. Many of my clients use Silexx OEMS. You can add a column for theoretical option price. Then, change the stock price to 205 and make any adjustments to Ivol you want and get a new theo price of the option based on your simulation. You...

The average trader does not need "really" accurate Ivols, because your are not likely entering orders on that are vol orders. eg Buy 100 XYZ July 40 calls at a 42.5 vol vs stock at a XX delta. Most trader use it as a reference to see where options are trading vs other strikes or the past. Having...