ib must be selling order flow on options

volatilitypimp · Feb 26, 2008

Quote from ak15:

Unfortunately, I disagree with some of your points specifically No 6. Under no circumstances and I repeat no circumstances can you compete or beat the MMs at thier own game. They will blow you away into smithereens.

Believe it. There are some beating the MM's at their own game.

ak15 · Feb 26, 2008

Quote from Option Trader:

I thought you did.

I do but you can't beat the MMs at their own game no matter how smart you are. Remember they work together as a group. No matter what anybody tells you. All you can do is to take advantage of some inefficiences in the marketplace as and when they occur.

Option Trader · Feb 26, 2008

Quote from ak15:

.... Remember they work together as a group. No matter what anybody tells you...

How did you find this out? Were you working on a trading floor or brokerage firm before? Or from particular personal experiences?

volatilitypimp · Feb 26, 2008

Quote from ak15:

I do but you can't beat the MMs at their own game no matter how smart you are. Remember they work together as a group. No matter what anybody tells you. All you can do is to take advantage of some inefficiences in the marketplace as and when they occur.

Ever hear of the RAES bandits?

fluttrader · Feb 26, 2008

When will there be a pure ECN structure to trade options making it a level playing field ?

It doesn't exist yet ?

ids · Feb 26, 2008

IB is a co-founder and co-owner of BOX. We put a lot of efforts to make it possible. There are no order flow payments on this exchange. It is probably the most "fair" competing ground now.

riskfreetrading · Feb 26, 2008

Quote from ids:

IB is a co-founder and co-owner of BOX. We put a lot of efforts to make it possible. There are no order flow payments on this exchange. It is probably the most "fair" competing ground now.

May be you can help me answer a question that has been in my mind. I once placed an order with IB on a low priced option. Market was 0.04 by 0.07. I placed an order to become the best national bid. It was 0.05. The order was routed to BOX. After the order was placed, the market bid reflected it.

The order did not get filled for the whole day. But during the day (after my order), a number of (I think more than 50) contacts were exchanged at 0.05.

Could you please help me explain this?

kiwi_trader · Feb 26, 2008

Interesting question rft ... but you will only get supposition if there are no dates. Can you provide the day and times for your order (even approximate should help).

wilburbear · Mar 22, 2008

Quote from volatilitypimp:

Ever hear of the RAES bandits?

RAES Bandits what a joke. How many financial groups could lose on an issue when a report leaks out from within the SEC supporting their position? The document below is a report that leaked from within the SEC. The AMEX actually *falsified documents* to conceal the firm-quote violations given to "RAES Bandits"! Still, the RAES Bandits cannot get traction anywhere. After this, you have to admit, the exchanges and specialist firms can do anything they want to the public, and there's nothing the public can do about it.

http://www.thememoryhole.org/corp/finance/sec_amex_report.htm