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The main benefit is risk-based margin.

Yes, your margin requirement is lower but so is your equity. Let's take a more real-life example to help you understand. E.G. PMA with $300,000 in equity. You go out and buy $2.5mm of SPY. The Margin at 10% is $250,000. SPY then drops 3%. Your equity is now ($2.5mm*.03=$75K) $75K less or...

My Roth has no leverage but is well funded. There was a time in December where I ran out of cash and wanted to make a short term trade, expected about two weeks. I sold enough of this other symbol to buy that stock, then went I got out, bought the other one back. It is nice when you do that in a...

I have, as long as my expectations have not changed and I do not have anything better to allocate to. I only use my Roth. My longest position is on right now, about 2 years. I have another for about a year.

I prefer to get into a position and exit when it hits my target. Unlikely to be intraday but I put no time limit on it. Some are a week when I get lucky but most are weeks to months.

In your example, if your broker requires 10% for SPY, you will always have to maintain equity of 10% or more of that value. Some brokers only calculate that at end of the day and some do their own calculations in real-time. It does not matter your cost basis. The risk shocks are done each day...

Hi cadig-the best traders find life outside trading, while not trading. They work out, play sports, spend time with family and friends. You need to find a balance.

Haris357-Margin interest is only charged when your debit balance exceeds your equity. Until the day you get put the stock, you have a credit balance from short puts, not a debit balance.

There is no plan that I have read about to have the OCC drop PMA.

Then maybe you can discuss the questions with Sterlin and ask him for help.

I'm not sure what Sterlin is. Maybe post the question and instead of asking for the answer, ask for help to understand the answer. Or, tell us what you think the answer is and why.

Who is the broker that gave you the test?

Is this Apex Clearing?

https://www.cmegroup.com/market-regulation/position-limits.html

You will have to determine your risk/reward ratio on that trade and set your stop at an appropriate place. It will not be the cost basis unless you wait for the future to rise first, then use the cost basis later. You will still have a large number of trades you exit before giving it a chance to...

I have no idea how to code that is NT, but it sounds like you need a conditional order that includes a buy stop that when triggered sends a sell stop. GTC. E.g. CL futures are around 48.30. I only want to be long if you touch 49. Set a buy stop at 49 that also triggers a sell stop at 48.75...

I suggest you consider the API you want to use, then code to that. You use Rithmic data, how about the Rithmic APi?

IMO, I would never use a hidden order. Your price can have trade throughs with no price protection on other exchanges. In an order where you want to buy a large block of stock in an illiquid symbol where the market makers might jump in front of you by a penny, I would consider an iceberg order...

You want to use CPM. If you need help using use, email or call me. I was an Option MM. The main difference is that the minimum calculation for a MM is $25/Option while a customer PM OCC requirement is $37.50. They are both risk-based but a "customer" must stay under the haircut. As a MM, my...

Correct, the OCC/NFA only offers cross margin to self-clearing brokers. When a large bank offers this as a service, they are loaning money to the customer based on their balance sheet for Futures margin and charging interest. This is not a retail offering. I would think >$100mm on your balance...