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TD Ameritrade and Think or Swim Option Market Maker Scam
- Thread starter tradelosses
- Start date
Mav,
In your scenario, what would you expect to happen if you placed a market order to sell? Would you get filled at $2 or would there be a price improvement? Suppose intrinsic value was $2.55 but you put the market order in. Then what?
They'll likely only take out a limit order that crosses their model price. If it's a market order, they will only improve the price at whatever minimum price improvement they can get away with. Why would they bother handing you free money if you put in a market order?
maybe I'll made a live trade YouTube video showing the difference or post screenshots. I just know I'm getting way better fills on Swabb than with TOS and I can sloppily put market orders and still get the best possible fill instead of getting hosed on TOS.
The increments are the big deal. If the mathematical value of the option is 3.43, if TOS is filling in increments of 10 cents, you are getting gypped at least 7 cents.
Even very large orders filled perfectly on swabb (20+ contracts) and instant fill...down to the penny
I believe TOS is getting compensated in some way for this. but then debit your account the know that swabb fills thinly traded options in increments down to a penny even if you use a market order
It's hard to explain everything going on behind the scenes but something is not right
The increments are the big deal. If the mathematical value of the option is 3.43, if TOS is filling in increments of 10 cents, you are getting gypped at least 7 cents.
Even very large orders filled perfectly on swabb (20+ contracts) and instant fill...down to the penny
I believe TOS is getting compensated in some way for this. but then debit your account the know that swabb fills thinly traded options in increments down to a penny even if you use a market order
It's hard to explain everything going on behind the scenes but something is not right
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Because the bid is obviously wrong. In any event would they improve prices for a limit order? If I put in a limit order at $2.50 would they give me $2.55?
No. The price improvement mechanism can only happen on market orders and when you select smart route where you allow the broker the ability to show the order to internal flow. If you submit a bid and route that bid to an exchange, they have to show the order on that exchange. Someone can still take you out but that's a different process then price improvement.
maybe I'll made a live trade YouTube video showing the difference or post screenshots. I just know I'm getting way better fills on Swabb than with TOS and I can sloppily put market orders and still get the best possible fill instead of getting hosed on TOS.
The increments are the big deal. If the mathematical value of the option is 3.43, if TOS is filling in increments of 10 cents, you are getting gypped at least 7 cents.
Even very large orders filled perfectly on swabb (20+ contracts) and instant fill...down to the penny
I believe TOS is getting compensated in some way for this. but then debit your account the know that swabb fills thinly traded options in increments down to a penny even if you use a market order
It's hard to explain everything going on behind the scenes but something is not right
Listen you are still not getting this. It does not matter what the increment is. If you submit a market order TOS can fill the order at 3.43. You clearly do not understand this. And also, who the hell submits market orders on options with dollar wide spreads? What on God's green earth are you doing son?
Listen you are still not getting this. It does not matter what the increment is. If you submit a market order TOS can fill the order at 3.43. You clearly do not understand this. And also, who the hell submits market orders on options with dollar wide spreads? What on God's green earth are you doing son?
ummm...then why does my entire trade history show multiples of 5 and 10 cents fills? I never got penny increments on my TOS fills unless the option has a penny increment on the control panel. Yeah, swabb fills at 3.43. TOS would fill at $3.5. For big orders, 7 cents makes a big difference
ummm...then why does my entire trade history show multiples of 5 and 10 cents fills? I never got penny increments on my TOS fills unless the option has a penny increment on the control panel. Yeah, swabb fills at 3.43. TOS would fill at $3.5. For big orders, 7 cents makes a big difference
You still are not getting it. The platform is just a GUI! That's it. Some brokers have multiple execution platforms. What the platform itself allows you to do is irrelevant. The platform doesn't fill your order, the market does. Why don't you get this? TOS is NOT a market maker. They don't post bids and offers. They simply route your order. And if you direct your order to a specific exchange, then they don't even do that, they simply transmit your order. Come on man, why is this so hard for you?
But is he getting better fills with schwab? Is it possible their routing algo is better than TOS?You still are not getting it. The platform is just a GUI! That's it. Some brokers have multiple execution platforms. What the platform itself allows you to do is irrelevant. The platform doesn't fill your order, the market does. Why don't you get this? TOS is NOT a market maker. They don't post bids and offers. They simply route your order. And if you direct your order to a specific exchange, then they don't even do that, they simply transmit your order. Come on man, why is this so hard for you?
You still are not getting it. The platform is just a GUI! That's it. Some brokers have multiple execution platforms. What the platform itself allows you to do is irrelevant. The platform doesn't fill your order, the market does. Why don't you get this? TOS is NOT a market maker. They don't post bids and offers. They simply route your order. And if you direct your order to a specific exchange, then they don't even do that, they simply transmit your order. Come on man, why is this so hard for you?
I know TOS is not a MM. there is some sort of back deal between TOS and market markers, splitting that 7 cents that should be your pocket. More profits for Ameritrade in the end.