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So you have one dollar in your pocket. You want to maximize it's return. So there are three things to look at. The cost of borrowing. The nominal return. And the inflation rate. The inflation rate will adjust for the value of the currency. Many people leave this out. They point to higher...

But there "is" growth. It's relative growth. The marginal dollar will seek the highest marginal return given a set of risk constraints.

What concerns me is that the world economy is 100% correlated. One of the things that saved us in 2008 was the growth in China, India and Brazil. One of the things that saved us domestically was the strength in the oil patch. It's actually good to have some economies prosper when others are...

Copper is overbought by China. This is the problem when one country becomes such a large buyer of a commodity. Copper is no longer tied to US growth but emerging market growth and if emerging markets are slowing, and they are, copper will not a hold a bid. As soon as you get bullish in China...

Well the yield curve is doing exactly what it should be doing. It's forecasting no growth going forward, or more precisely about 1% growth. Yes a strong dollar is deflationary although i'm not sure it's going to rocket to the moon anytime soon but if it stays bid, rates really can't go higher...

That chart is smoothed. You can't just toss out the contango and call it a day. Anyway, I don't think there is much upside here. Summer demand is winding down and the market is still well over supplied. The curve is steep enough given the demand we have going into withdrawal season. Do what...

This post is absurd. If you hold gas long term you are liable to actually go negative! Yes, you can actually go negative. You cannot simply hold it as the roll yields will kill you. It doesn't matter if gas goes to 100, you could still lose 100% or more. Why is this so hard for ET to...

Demand is actually very strong right now. ERCOT is having the strongest demand ever right now and all along the south. The issue is not demand, the issue is the supply overhang. We are eating into that supply at a pretty good pace right now.

Ugh.....it doesn't quite work like that. You have to "roll" the contract. And the contango will keep you from making that "big score". In order to catch a move like that you are going to have be long peak winter gas which trades at a premium to summer. You are not going to be able to buy...

Amazing in today's age with all the technology and all the data mining out there that there are still people that don't how to do a simple search. :)

I think your question went right over their head. :)

This is completely false and it demonstrates a complete lack of respect for the non linear nature of gamma. The returns are not asymmetric nor can they be by the very definition of what he is doing. In other words, for every basis point of return that gets added via leverage, the loss...

NOB up 23 ticks on NFP. Figure that one out.

No. Schwab is selling the order to a liquidity provider.

You still are not getting it. The platform is just a GUI! That's it. Some brokers have multiple execution platforms. What the platform itself allows you to do is irrelevant. The platform doesn't fill your order, the market does. Why don't you get this? TOS is NOT a market maker. They...

Listen you are still not getting this. It does not matter what the increment is. If you submit a market order TOS can fill the order at 3.43. You clearly do not understand this. And also, who the hell submits market orders on options with dollar wide spreads? What on God's green earth are...

No. The price improvement mechanism can only happen on market orders and when you select smart route where you allow the broker the ability to show the order to internal flow. If you submit a bid and route that bid to an exchange, they have to show the order on that exchange. Someone can...

Yes, here is what happens. Market is 2 bid at 3. Citadel has a theo value of 2.50 on this option (which doesn't always have to be the mid price). When you put in a bid above theo, Citadel and firms like it will automatically take it out. You're bidding over model price. They are not going...

Bob, step up to the podium, the fish are biting! :) On a more serious note, I looked at your site and you guys seem to offer a nice menu of trading platforms and competitive rates. Why don't you make the case for choosing LS over IB. I'm genuinely interested.

You are very confused. I hope you keep your day job. TOS is "not" filling you anywhere, they sell your order flow. Your order is going to the exchange and all exchanges can improve the price in penny increments regardless of what your order entry on your platform allows you to do. Charles...