Clearing costs need to come down...

Quote from maglia rosa:



how is the level of VIX related in any way to clearing costs? are you kidding?
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you're missing my point. i was saying that when the moves tended to be bigger (higher VIX), i'd get more average profit per share...thus making my relative commission costs lower and far less significant...

and i do not want to trade eminis.

it's like someone said in this really good thread that i can't seem to find right now -- in 1997, institutions would throw 100,000sh market orders at the specialist, because they didn't care if they blew 3% in execution costs when they expected to make 40% on the year. now, in 2002-2003 those same orders are being broken up, since a 3% execution cost could make the difference between being net profitable or not for the year...

all i'm arguing is that now commission costs will make a much bigger difference in net profit at the end of the day with the daily ranges contracting more and more everyday...
 
Quote from bungrider:

the pressure's on...

with the chop, i'm pissing away more and more money each day on clearing, and commissions are having a much bigger effect on my P&L than ever before.

fees are the same as they were when the VIX was at 50, and this is bullshit.

it's time for clearing to come down. the business just might stay alive if it does...
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read this thread....
http://www.elitetrader.com/vb/showthread.php?threadid=16614

and when you're finished, read it again....
 
Quote from stock777:

Can't make no big $$$ trading against other sharpshooters.

That's why the options and futures markets spend so much money on PR and 'education'. Fresh meat = $$$$$$$$$$$
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Exactly!
 
Quote from bungrider:




i mean, let's be real -- it's getting extremely tough to make what any of us would consider a "decent" living.
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And you attribute the above to clearing costs? After 7 years I'm finding it easier to make a decent living. Trades cost next to nothing. Then again I'm quick to take profits and try to enter high probability trades.
 
Well, according to what I've been reading in the trade rags, market making profits are abysmal for the very reasons many traders here are complaining. Very small spreads, low volitility, and though they NEVER say it, lackodumbmoney.

That said, there's still money out there but it ain't easy.
 
Then there would be some more "little guys" in the market, more volume, more liquidity.

But the SEC Pattern Day Trading Rule - Killed the participation of the little guy.
 
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