brokers point of view to options trading

Quote from newwurldmn:

receiving that spread would be awesome.
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Depends on what you're doing & what's behind you of course. But I think you know that :cool:

On the broking end of things, the stories I've heard about broking retail forex.. and CFDs. Wow. Pretty hard to fuck that up.
 
Quote from AK(m):

i am newbie on the forum and options. My broker have told me that options trading is more risky in comparison with futures and reccomended me to have at least 25k $ on account to trade options. I suppose it was not a full truth and the main reason is that active futures day traders are most attractive clients for any broker. Option traders can not make good profit for brokers and that was the main reason.
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Active traders make all brokers happy. The broker may have a preference but he'll take a trader over a buy and holder any day. The 25k requirement is to avoid running afoul of the Pattern Day Trade rule.

As far as you're concerned, does it really matter? Your objective is to make a nice profit. Would it make you happier to trade one vehicle, netting 25k while paying 1k in commissions or net 50k on the other vehicle while paying 3k in commissions?
 
Thanks to everyone who answered. I meant that it`s unlikely for a newbie to trade options in too active style but buy and hold could probably come into his mind(came into mine at least:p ). On the other hand, making profit through 150 two-ticks trades per day may seem so easy.:) ..So my broker is probably a nice guy and wants me to stay in trading as long time as it`s possible.
Have a nice trading.
 
Quote from AK(m):

Thanks to everyone who answered. I meant that it`s unlikely for a newbie to trade options in too active style but buy and hold could probably come into his mind(came into mine at least:p ). On the other hand, making profit through 150 two-ticks trades per day may seem so easy.:) ..So my broker is probably a nice guy and wants me to stay in trading as long time as it`s possible.
Have a nice trading.
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Options aren't really meant for day trading by the public. MM's "must" make market to provide liquidity, and therefore will day trade at times. But, even in the pits, we would prefer to hedge with the "better" options vs. day trade for pennies often times. Find the best theoretical edge, and only close positions when that edge is gone, or near gone.

FWIW,

Don
 
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