You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
PHLX 2-minute tactics
- Thread starter nusrat
- Start date
http://www.redi.com/july25.htmlOriginally posted by nusrat
1. I know about a rule which says that you can't disguise a large order by splitting it into smaller orders (because the MM needs to lay off).
Are you saying that, even for small orders, even if all on the same side, even if different prices, this is forbidden?
2. Where does the "15 seconds" come in? Does it mean that you must wait 15 seconds, to submit an additional next order, or to modify a prior order, or what?
And can't one or both of the proposed techniques still be useful if modified to accomodate the 15-second rule?
Reading that REDI page made things much clearer. Thanks.Originally posted by nusrat
Simultaneously submit bids at 1 increment away, 2 away, 3 away, and cancel all of them immediately.
But it looks to me like it would still be kosher to submit 1, cancel, wait 15, submit 2, cancel, wait 15, etc.
"submit 1, modify away, await confirm, modify further away, await confirm, etc."
I don't think this violates the 15 second rule, since no additional order is involved.
In both cases, the intent isn't to be an MM or manipulate the market (which seems to be the point of the rules), but rather to skirt the two-minute hold.
Opinions?
Originally posted by jem
Just for information's sake being that I rarely trade options that are not part of a conversion, what is this discussion about? What is the purpose of all these keystrokes? Why did I read this thread?
thanks
If you have to ask; you probably don't need to know ...