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options - why can't i have bid and offer on the same contract?
- Thread starter chewbacca
- Start date
they say it's because it makes you a market maker, but there are other brokerages that allow it so apparently it's not an sec/cboe restriction.
Quote from chewbacca:
again.......if cboe wants option volumes to increase then they need to 1 allow penny pricing 2 allow the ability to bid/offer on same contract and 3 remove the cancellation fees........is there any chance this will ever happen?
i would like to see the cboe at least try out penny pricing. there's some debate about the effect of penny pricing on liquidity of low-volume options such as deep itm/otm oex & spx (due to the reduced number of price points). one solution would be to institute a mixed system where near-atm options are in pennies and deep otm and itm options are in nickels
Quote from chewbacca:
so IB is just being a bitch.....protecting its MM business
It's not likely that they are concerned with the competition from an individual investor - regardless of the number of contracts you want to trade.
When they fill your order, they collect a commission. Profit with zero risk. That's better that the possibility of losing out on a trade because you got in the way.
Mark