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Swaps are generally a good proxy. If swap spreads widen there is a very low chance that credit spreads on average did not.

Speaking of credit spreads widening, 2 yr swaps are out 9 bps, 5yrs 18.6 bps, 10 yrs 21.2 bps, and 30 yrs 20 bps. Today would have been a bad day to be short credit spreads. ;-)

Sure. Put a server next to the matching engine at the exchange (e.g. Equinox for CME). All calculations are done on the server, and the server is connected to the matching engine with a fiber optic cable. Then create a client (a program that you run on your workstation) that will allow you...

It has a very intuitive, user-friendly GUI. Other than that, it sucks. It's slow and is full of bugs. Don't know what to offer you as an alternative. Front-ends like that are the way of the old. Everyone is moving (if they haven't already) to client-server systems.

Jaxon hit on what most people look at for short term hedges -- dollar value of a basis point, or DV01. DV01 measures absolute change whereas duration measures percentage change. As far as change in deliverables (i.e. basis optionality), that will not be a problem until rates rise...

Here's another list. Alaron Allston Trading, LLC Altea Trading Company LLC The Archelon Group Boston Cabot LLC Consolidated Trading LLC Cornerstone Partners Curvalue Financial Services Group Darwin Capital Trading LLC DE Trading Corp / International Trading Group DRW Trading Group...

I think you're probably alright then. Here's an example of warehousing (which I'm not sure is illegal in all cases): A trader is allowed to take on twice as much risk intraday than he is allowed to take home. In otherwords, the overnight VaR is bigger than the intraday VaR. Therefore, the...

The issue is not the timeframe, it's the fact that the you are on both sides of the trade. That makes it look like there is more activity than there really is.

Below are some examples of market manipulation. I think trading with yourself falls under the "Wash sale" category. Market manipulation is a deliberate attempt to interfere with the free and fair operation of the market. Market manipulation examples include: Price manipulation Placing...

I'm not saying the guy's not successful. He sounds great. But, I would contend that he is probably not even close to the best trader in the world. Also, I'm pretty sure the question in the initial post of this thread specified that the answer should not be someone you know personally...

No, but neither are your trades in 'case 1.' Trading with yourself is illegal. If you want to transfer shares, call up your broker and have them transferred. Doing it "where it can be seen" is market manipulation.

I don't think that someone that makes less than half a billion a year should even be considered in the running for most successful trader. http://www.elitetrader.com/vb/showthread.php?s=&threadid=66332&perpage=6&highlight=the%20highestearning%20traders%20of%202005&pagenumber=2 Of the top...

Cute. 20k/day is only 5 million/year. You call that "hugely successful?"

This site is great for that: google.com

At a prop shop, you'll get virtually unlimited capital and dirt cheap commissions. If you're only making 5 trades a week, I guess the low commissions aren't that big of a deal.

When I voted, I voted for never have, never will buy the day's low AND sell the day's high on the same trade. But, I assumed we were talking about outrights. If we're talking spreads, I do it all the time. :cool: Edit: for that matter, I probably do buy the day's low and sell the day's...

Yep, when the stock splits (or the company issues stock dividends), the options are adjusted, or "made whole" as they say.

6/16 is the last trade date. If you own the contract after the close on 6/16, you will be delivered against. You can roll it beforehand though. The CME has a calendar spread market that trades in 1/5 ticks and is extremely liquid.

Daytrading or prop? What's the difference. When I hear the term daytrader, I think of a SOES bandit playing with his/her own money. Of course, there are no more SOES bandits, so when you asked about daytrading, I assumed you meant at a prop shop. If you know you're going to be successful...

Notice the convexity when you think about your p&l in terms of pips for pairs defined as USD/XXX. If USD/JPY goes up x pips, you make more dollars than you would have lost if the USD/JPY went down by the same number of pips. e.g. If you buy a yard of yen when the USD/JPY rate is at 111.7, it...