How much money is needed to start as a market maker in options on the floor ? The reason I'm asking is because I am sitting a lot on the bid and the ask of options and try to hedge my risk away in the underlying, but now with the new rule change at IB for canceling orders I think my way of trading will be finished and I'm looking for a solution to this problem.
Leasing A Seat At One Of The Exchanges!
- Thread starter bvam1
- Start date
Quote from qazmax:
I was talking of the groups of traders off floor that were pick-off artists. Locking free positions by using multiple accounts.
e.g. Some would always do the long butterfly for free. Using multiple floors and multiple accounts to hide the game.
I have observed that kind of behavior a lot. But it is pretty obvious, even if you don't know the people behind it: If the quote is 1.10 x 1.20 and without a move in the underlying or futures someone suddely bids 1.20 for 200 contracts on an exchange other than where the 100 are being offered at 1.20, you have to wonder about his motivation.