"program trading" at home

rs7 · Jul 23, 2002

Originally posted by Don Bright
As far as "buying power" goes, intraday there is no 'hard limit" per se'....it is based again on risk, and a "hedged position" obviously would be treated more favorably than a "naked" long or short.

Feel free to call me if you like about the details of how this works (at least how BT handles the various situations).

Don

OK, that makes more sense...but why just intraday? What difference would holding time make if you could put on a "riskless" transaction?

Anyway, will call during non market hours. Thanks.
RS

daniel_m · Jul 23, 2002

Originally posted by rs7

That I didn't know....what is the reason?

Possibly to prevent any "Niederhoffer" incidents from blowing the firm out of the water..

(Although the cynic out there might say that option trading isn't as commission intensive..)

daniel_m · Jul 23, 2002

Victor Niederhoffer ("Education of a Speculator) blew out his entire net worth by selling puts..

rs7 · Jul 23, 2002

Originally posted by daniel_m
Victor Niederhoffer ("Education of a Speculator) blew out his entire net worth by selling puts..

OK, but I see no connection with selling naked puts with what I am talking about. But thanks for your input.
RS

daniel_m · Jul 23, 2002

Originally posted by rs7

OK, but I see no connection with selling naked puts with what I am talking about. But thanks for your input.
RS

no, it has nothing to do with what you were talking about, but I used the Niederhoffer example as a possible reason why prop firms don't allow option trading of ANY kind. (riskless or not)

but, like I said, the truth is probably that commission-wise it's not worth it.